Apple, Google, Microsoft, Nokia, Research in Motion (RIM) and many others are all vying for a large share of the smartphone market, each taking a unique approach with their applications and operating system strategy (Brady, Miller, 2010). While Apple has an early lead in this market, Google and Microsoft have both defined mobile computing initiatives including operating systems and application support as their primary priorities for the long-term (Arnold, 2011)
EV-DO and 4G technologies allow a smartphone or tablet PC to be used anywhere without regard to a Wi-Fi connection being available or not. Apple, Google, Microsoft, Nokia, Research in Motion (RIM) and many others are all vying for a large share of the smartphone market, each taking a unique approach with their applications and operating system strategy (Brady, Miller, 2010)
Smartphone Market Environmental Analysis Wireless technologies, hardware platforms and the operating systems enabling them are the most disruptive series of innovations influencing how people, companies, organizations and entire nations communicate (Bradley, 2010)
Smartphone Market Environmental Analysis Wireless technologies, hardware platforms and the operating systems enabling them are the most disruptive series of innovations influencing how people, companies, organizations and entire nations communicate (Bradley, 2010)
The end game for Apple in the smartphone market is to continually fuel the economics of the iTunes ecosystem by having platforms (like the iPhone and iPads) that can function as video production and viewing devices (Allen, 2010). Approximately one of every three dollars that Apple generates in profits is directly tied to an iTunes transaction or device experience (Chartier, Moren, 2011)
North America is considered to have the fastest growing market for both products and services during the forecast period. Table 1: Global Smartphone Product and Services Revenue Forecast (Dollars in Billions) 2010 2011 2012 2013 2014 CAGR Europe $10,224 $13,637 $17,350 $21,687 $25,571 26% Asia-Pacific $11,880 $16,766 $21,013 $25,363 $28,921 25% North America $1,342 $2,823 $5,009 $8,526 $12,379 74% TOTAL $23,446 $33,226 $43,372 $55,576 $66,871 30% Source: Ovum Research based on studies of the following sources: (Caulfield, 2010) (Chartier, Moren, 2011) (Jaroslovsky, 2010) (Vickers, Frey, 2010) (Arnold, 2011) The competitive rivalry within the smartphone market environment aligns well with the core concepts of the Porter Five Forces Model
Table 1: Global Smartphone Product and Services Revenue Forecast (Dollars in Billions) 2010 2011 2012 2013 2014 CAGR Europe $10,224 $13,637 $17,350 $21,687 $25,571 26% Asia-Pacific $11,880 $16,766 $21,013 $25,363 $28,921 25% North America $1,342 $2,823 $5,009 $8,526 $12,379 74% TOTAL $23,446 $33,226 $43,372 $55,576 $66,871 30% Source: Ovum Research based on studies of the following sources: (Caulfield, 2010) (Chartier, Moren, 2011) (Jaroslovsky, 2010) (Vickers, Frey, 2010) (Arnold, 2011) The competitive rivalry within the smartphone market environment aligns well with the core concepts of the Porter Five Forces Model. The rapid innovations in new market entrant activity as it relates to device and operating system development, coupled with the critical role of suppliers and the increasing expectations of consumers all combine to define a volatile and fast-moving market (Edwards, 2010)
This dynamic will eventually turn smartphones into a commodity within three to five years as long as the supply chain is uninterrupted and allowed to mature, attaining cost efficiencies over time. The bargaining power of buyer is however the greatest force in this industry today, as the Chinese consumer will demand the latest features and applications at very competitive prices (Einhorn, 2010)
North America is considered to have the fastest growing market for both products and services during the forecast period. Table 1: Global Smartphone Product and Services Revenue Forecast (Dollars in Billions) 2010 2011 2012 2013 2014 CAGR Europe $10,224 $13,637 $17,350 $21,687 $25,571 26% Asia-Pacific $11,880 $16,766 $21,013 $25,363 $28,921 25% North America $1,342 $2,823 $5,009 $8,526 $12,379 74% TOTAL $23,446 $33,226 $43,372 $55,576 $66,871 30% Source: Ovum Research based on studies of the following sources: (Caulfield, 2010) (Chartier, Moren, 2011) (Jaroslovsky, 2010) (Vickers, Frey, 2010) (Arnold, 2011) The competitive rivalry within the smartphone market environment aligns well with the core concepts of the Porter Five Forces Model
Analysis the Smartphone Industry While there had been over a decade of development preceding their entrance into the market, Apple's iPhone OS, called iOS, was a pivotal point in the defining of smartphones as more than a telephone replacement and more of a computing platform (Zeichick, 2008). Apple's many efforts to get the iOS turned into a market standard has been successful in the consumer markets, yet still is challenged by concerns over Total Cost of Ownership and security in the enterprise computing market (King, 2010)
While Microsoft and Google and in large part seeing the smartphone market in the same way on this point of architecture and openness to developers, Android is far outpacing Windows Phone operating systems versions due to the richer functionality support and definitions (Lyons, 2010). Google has done a much better job of recruitment and retention of key developers over time and has also defined a much more efficient approach to defining onboarding processes for developers to get their applications quickly to market (Pocatilu, 2010)
Apple tends to cannibalize their developers over time especially in areas where the company can gain significant differentiation at the operating system level. Google and Microsoft however have taken the approach of seeing the developers as the most important customer they have for their operating systems (Pogue, 2010)
Apple on the other hand has defined differentiation through a very rapid pace of innovation that is integrated to gradual improvements in firmware and phone-based technologies (Rose, 2010). Apple has also relied heavily on the use of digital camera technology, video streaming, messaging protocol support and the ability to capture, edit and publish videos in real-time (Raphael, 2010)
As a result, Android has been able to grow at nearly a 700% pace in application development over the last two years, with a small base of initial applications partially inflating the very rapid growth of applications launched on this platform (Pogue, 2010). Apple on the other hand has defined differentiation through a very rapid pace of innovation that is integrated to gradual improvements in firmware and phone-based technologies (Rose, 2010)
The revenue streams in the enterprise market are why Apple, Microsoft, Nokia and Google are so intently working towards capturing with their operating system design, developer relations programs, and rapid pace of innovation (Voight, 2010). A recent survey of applications completed as of this point shows there are 250,000 Android applications, 400,000 Apple iPhone OS applications and just fewer than 20,000 for the Windows Mobile operating system (Strohmeyer, Perenson, 2011)
A recent survey of applications completed as of this point shows there are 250,000 Android applications, 400,000 Apple iPhone OS applications and just fewer than 20,000 for the Windows Mobile operating system (Strohmeyer, Perenson, 2011). Microsoft has said their top priority is the enterprise software market and this I why they have designed their operating system to have closed source code yet be carrier agnostic, meaning any cellular phone that has the necessary components can support it (Van Zuiden, 2010)
North America is considered to have the fastest growing market for both products and services during the forecast period. Table 1: Global Smartphone Product and Services Revenue Forecast (Dollars in Billions) 2010 2011 2012 2013 2014 CAGR Europe $10,224 $13,637 $17,350 $21,687 $25,571 26% Asia-Pacific $11,880 $16,766 $21,013 $25,363 $28,921 25% North America $1,342 $2,823 $5,009 $8,526 $12,379 74% TOTAL $23,446 $33,226 $43,372 $55,576 $66,871 30% Source: Ovum Research based on studies of the following sources: (Caulfield, 2010) (Chartier, Moren, 2011) (Jaroslovsky, 2010) (Vickers, Frey, 2010) (Arnold, 2011) The competitive rivalry within the smartphone market environment aligns well with the core concepts of the Porter Five Forces Model
This adoption of smartphones and tablet PCs into enterprises and corporations is worth literally tens of billions of dollars in revenues over the next three to five years. The revenue streams in the enterprise market are why Apple, Microsoft, Nokia and Google are so intently working towards capturing with their operating system design, developer relations programs, and rapid pace of innovation (Voight, 2010)
Their strategies form the foundation of this analysis. Analysis the Smartphone Industry While there had been over a decade of development preceding their entrance into the market, Apple's iPhone OS, called iOS, was a pivotal point in the defining of smartphones as more than a telephone replacement and more of a computing platform (Zeichick, 2008)
The new retail store marketing strategy to be utilized will take place within Gateway's 272 retail stores located throughout the U.S. (Fikes, 2003)