Analysis of the Global Smartphone Market and the Strategies of Its Major Players

Topics: Smartphone, Mobile phone, IPhone Pages: 23 (7125 words) Published: April 18, 2011
Analysis of the global smartphone market and the strategies of its major players

Hee-Chan Song
Hanyang University, University of Texas at Dallas1 Business Administration, Philosophy

The author would like to acknowledge the valuable assistance of University of Texas at Dallas in the preparation of this manuscript, in particular the assistance of Professor Lee from the Management Department. The author is grateful to Professor Lee for offering positive feedback and suggestions for improvement during the entire process of writing this paper. 1

The author is a student at Hanyang University in South Korea, but most of the research for this paper was performed while the author was in an exchange program at the University of Texas at Dallas.


Introduction 1. Definition of the smartphone 2. Effect of smartphone popularization 3. Radical transformation of the IT industry and the altered competitive situation

1. Market growth of the smart phone 1.1 History 1.2 Market growth

2. Market analysis 2.1 Shift of core value in the IT industry: Hardware to Software 2.2 Current market analysis 2.2.1 Hardware manufacturers 2.2.2 The Big Three 2.2.3 Content developers 2.2.4 PC makers

3. Competitive analysis 3.1 Smartphone hardware manufacturing 3.2 Operating system market 3.3 Content development and distribution market 3.4 Consolidated analysis of players‟ strategies in the smartphone market

4. Conclusion

The smartphone has ushered in a new generation of mobile Internet devices. A small smartphone that is only four inches long enables the sharing of real-time information and knowledge, and it can transform lifestyles. People use smartphones to obtain, share and exchange information whenever they desire. The speed of information processing is accelerating, and real-time communication is becoming universal and is no longer constrained by time and space. Through its ripple effects, the smartphone makes it possible for people to realize a genuinely ubiquitous life in a variety of areas, such as business, education, social interaction, and leisure. In this paper, I investigate the global smartphone market by analyzing its growth and the competitive situation. Based on these analyses, I discuss the possible strategy of each player in the market.

INTRODUCTION 1. Definition of the smart phone
A smartphone is a new form of mobile Internet device that combines the traditional features of a phone and a PDA.2 Another noteworthy definition of a smartphone is that it is a mobile phone that offers more advanced computing ability and connectivity than a basic current mobile phone does.3 The common aspect of the two definitions is that a smartphone is an integrated device with mobile telephone technology and the ability to access the Internet. The smartphone first achieved both the functionality of a traditional phone and technology of a PC (see Figure 1). Unlike traditional phones, which are produced as finished goods, a smartphone enables users to install, add, and delete hundreds of applications. Through various applications, users can also personalize the interface. Hence, because smartphones allow free access to the Internet regardless of time and location, users of smartphones are entering an era of ubiquitous information.

The concept of the smart phone Source of information informainformation  Printed source  Desktop  Laptop  TV, Radio  E-book Communication tool      Messenger Social network E-mail Voice Text message

Smart phone 1. Extension and unlimited sharing of information 2. Changing lifestyles with numerous applications 3. Improvement of social communication


Ki-Duck Kown, Feb. 8. 2010 “Smart phone shaping the future.” Samsung Economic Research Institute. 3 Andrew Nusca, August. 20. 2009. “Smartphone vs. feature phone arms race heats up; which did you buy?” ZDNet....
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