Market Analysis on Smartphone Industry

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“The future belongs to those who believe in the beauty of their dreams.” Says Eleanor Roosevelt and we cannot agree more. We have always been fascinated by topics related to product design and market analysis since a very small age as they are essentially omnipresent. Business related questions like “Why is this product priced like that?” and “How does this company make a profit?” have since then filled our mind and we have been eager to search for the ideal answer. The more we learn, the more we realize that we would like to know more about it and meet people from all over the world. Therefore, we would like to seize this precious opportunity to satisfy our curiosity about the world.

In fact, three of us are using Apple iPhone (i.e. iphone3G, iphone3GS and iphone4) and we are definitely the smartphone users who have clear understanding of the functions and specifications of the current existing products in the smartphone industry. Since all of us have great interest in participating in this project, in which we can deeply analyze this current situation of this industry and apply knowledge and theories in making comparison between product competitiveness, we hope that we can make good use of this golden opportunity to learn outside of classroom and conduct competitive analysis on smartphones through identifying customers’ needs and surveying the latest products of the targeted category that are available on the market.

To show our great enthusiasm towards this project, we have prepared an article analyzing the smartphone industry and making evaluation on the competitive advantages of some existing products.

Introduction - More than what we expected in the past
Who wants everything inside mobile phone? People at first are skeptical about the potential of the so-called modernized Operating System stored in mobile phone. It turns out that the idea became a multi-billion dollar industry. Everybody is trying to get a piece of the smartphone pie including Microsoft, Google, Apple, Nokia, and Research In Motion (RIM).

Gone are the days when mobile phone users solely made and received telephone calls across a wide geographic area. Nowadays, what consumers care about is how much I can get access using a mobile device rather than just making and receiving a phone call.

The increasing importance of mobile devices has triggered intense competition amongst software giants such as Google, Microsoft, and Apple, as well as mobile industry leaders Nokia, Research In Motion (RIM), and Palm, in a bid to capture the largest market share pre-emptively.

Nowadays, a smartphone run complete operating system software providing a platform for application developers. It offers more advanced computing ability and connectivity than a contemporary feature phone and allows the user to install and run more advanced applications. Growth in demand for advanced mobile devices boasting powerful processors, abundant memory, larger screens, and open operating systems has outpaced the rest of the mobile phone market for several years.

Smartphone users like us are eager to have functions like the capability in getting internet connection via Wi-Fi and 3G network, social networking, location services, HD video recording, retina display, installing amazing applications which provide all sorts of things that we could imagine via app store for Apple iPhone or market for Google Android.

Target customers and their needs
According to Gartner, Inc., worldwide mobile device sales to end users totaled 1.6 billion units in 2010, a 31.8 percent increase from 2009, Smartphone sales to end users were up 72.1 percent from 2009 and accounted for 19 percent of total mobile communications device sales in 2010. A huge increase in smartphone sales is expected in the coming years.

Today’s consumers can access a wider range of mobile services than ever before through smartphones, so in choosing mobile device consumers care more and more about which content...
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