SMARTPHONESSMARTPHONESTopic 6-1Topic 6-1

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Presentation Outline

Article Overview

“As smartphones proliferate, will one company emerge as the clear market winner?” – Knowledge@Wharton

Article Overview

http://knowledge.wharton.upenn.edu/article.cfm?articleid=2244

Article Overview

Product is increasingly popular “… m o ving fro m the re a lm o f niche p ro duc t to

g a m e -cha ng ing , mass market item. ”

http://knowledge.wharton.upenn.edu/article.cfm?articleid=2244

Article Overview

Smartphone industry possesses tremendous growth potential 1In the first quarter of 2009…

Economy in severe decline Overall mobile shipments fell 15.8% But, smartphone segment grew 4%

1Figures extracted from article. Statistics were published by IDC, a research subsidiary of International Data Group (IDG).

Article Overview

Fierce competition for market share Players:

BlackBerry (RIM), iPhone (Apple), Treo (Palm) “The s m a rtp ho ne m a rke tp la c e is full o f

inc re a s ing ly c le ve r d e v ic e s o ffe re d a t s te a d ily fa lling p ric e s . ”

http://knowledge.wharton.upenn.edu/article.cfm?articleid=2244

Article Overview

Lock-in practice (Apple) “The p ra c tic e o f

re q uiring us e rs to us e hardware and software fro m a prescribed set of vendors by im p o s ing s ubs ta ntia l cost or inconvenience in replacing the p ro duc t. ”

http://knowledge.wharton.upenn.edu/article.cfm?articleid=2244

Article Overview

Divide and conquer strategy Open source OS

Article Overview

Key determinant of success: Software availability

Choice rules the industry

What is a smartphone?

+ =

What is a smartphone?

Smartphones are mobile phones that offer

advanced functionality above a basic feature phone.

Able to run third-party applications on a platform (OS)

http://www.techterms.com/definition/smartphone

Features & Characteristics

Enhanced connectivity Browse the web anytime, anywhere

Convenience Mobility & portability

Multi-tasking Run several functions at one go

Features & Characteristics

Customizability Suit the user’s specific needs App Stores

1. iTunes Store2. Market3. BlackBerry App World4. Ovi Store5. Windows Marketplace

Features & Characteristics

Tethering Mobile phone acts as a modem Allows other devices to connect to the internet

via data plan

Exceptions Phones running on Windows Phone 7

Features & Characteristics

DemoTethering

Accessibility

Back-up/alternative

Convenience

Battery consumption

Additional software

Expensive

Speed

What are these?

What are Apps?

Software that runs on mobile devices Multiple functions and advanced services

Increases internet usage E.g.

Mobile instant messaging client (ebuddy) Social networking services (Facebook Mobile)

Apple’s App Store Downloads Top Three Billion

“ Three billion applications downloaded in less than 18 months –

this is like nothing we’ve ever seen before,” – Ste ve Jo bs , Ap p le ’s CEO . (5 Ja nua ry 2 0 1 0 )

Applications are the second fastest growing IT area of spending

Mobile applications is a high growth element

Trend: Fast expanding market with high potential Served by more developers, publishers and providers

Who Creates Apps?

Types of Apps

Pre-installed

Downloaded from app stores and mobile software distribution platforms Third-party Software Proprietary Software

What can they do?

http://andynaselli.com/iphone-resources

What can they do?

Capable of almost anything

Limited by the: Imagination of programmers

(application writers) Technology of the time

What can they do?

Adapted from Mobile Applications, Mobile Marketing Association (September 2008)

DBS mBanking

DBS iBanking system Features Backed by DBS iBanking

Money Safe Guarantee Online security Secured account

information in event of phone loss or theft

DBS Indulge Singapore

Gain access to dining privileges and great deals

Discounts and special offers for dining pleasure

Features include: - Built-in maps for dining

places- Driving directions- Ability to share details

Michigan colleges getting into iPhone, Android smartphone app game

Students design mobile phone applications

Mobile Applications and Services Lab

GVSU Laker Mobile App

Quick Graph App downloaded 500,000 times by iTunes users

By Dave Murray, The Grand Rapids Press, 14 March 2010

Nine-year Old Writes iPhone Application

Doodle Kids (iPhone application)

Enables users to draw by brushing their fingers against iPhone’s touchscreen

Clear doodle by shaking the phone

Downloaded more than 4,000 times from Apple’s App Store within two weeks

By Re ute rs , 6 Fe brua ry 2 0 0 9

Doodle Kids

Google Goggles

Video

What platforms are apps running on?

Apple iOS Android Symbian RIM BlackBerry Windows Palm WebOS

Apple iOS

Apple Factor User Interface Apps: - >250,000 apps available

- >3 billion downloaded

http://asia.cnet.com/reviews/mobilephones/0,39050603,62200934,00.htm http://developer.apple.com/devcenter/ios/index.action http://www.apple.com/pr/library/2010/01/05appstore.html

Limited multitasking Tight control of iTunes App Store by Apple Can only run on Apple devices

Strengths:

Weaknesses:

Google Android

>80,000 apps on Android Market 12,593 new apps per month Open OS

http://www.androidcentral.com/googles-andy-rubin-says-over-80k-apps-now-android-market http://www.androlib.com/appstats.aspx http://sip-trunking.tmcnet.com/topics/security/articles/89653-smobile-systems-survey-warns-dangers-android-mobile-app.htm

Loose control of Android Market by Google

Strengths:

Weaknesses:

Nokia Symbian

Leader by market share (40.1%) Open OS Stable & low energy consumption

http://www.symbian-guru.com/welcome/2010/02/distimo-shows-ovi-store-apps-are-cheaper-than-iphone-apps.html http://www.letsgomobile.org/en/review/0037/symbian-windows-mobile/

http://www.pcworld.com/businesscenter/article/188535/five_benefits_of_an_open_source_symbian.html http://www.symantec.com/security_response/writeup.jsp?docid=2004-061419-4412-99

Strengths:

Decreasing market share >6,000 apps on Ovi Store Vulnerable to viruses (eg. Cabir)

Weaknesses:

RIM BlackBerry OS

>10,000 apps on RIM’s App World User interface Plans to switch OS

http://www.businessinsider.com/rim-is-finally-ditching-the-blackberry-os-but-not-for-android-2010-9 http://www.computerweekly.com/Articles/2005/05/10/209884/Clear-business-gains-from-BlackBerry-mobile-technology.htm http://www.dailytech.com/New+Study+Gives+RIM+Smartphones+High+Scores+on+Security/article15261.htm http://www.mobile-ent.biz/news/38555/RIM-passes-10000-apps-on-BlackBerry-App-World

Popular for businesses Superior email capabilities

- downtime & productive time Strong security protection

Strengths::

Weaknesses::

WindowsWindows Stable & fast (Windows Mobile) Under-developed app store Integration with Windows Office Suite Windows Phone 7 – 8 Nov 2010

http://www.mobile-ent.biz/news/38555/RIM-passes-10000-apps-on-BlackBerry-App-World http://asia.cnet.com/reviews/mobilephones/0,39050603,62201477,00.htm http://www.androidcentral.com/webos-review-smartphone-round-robin

Palm WebOSPalm WebOS 2,400 apps on Palm App Catalog Poor performance speed Enhanced appearance & multitasking

capabilities

How critical are applications?

Source: Crowd Science (June 2009), Smartphone Usage and Brand Study

Determinants of a platform’s success

Personal Concerns: Functions User Interface Performance Brand Loyalty

Corporate Concerns: Apps Development

How critical are applications?

What is an iPad?

First tablet

computerby Apple

FEATURES

9.7” Multitouch TouchscreenMicroSIM slot

Wireless capabilities

3G data network capabilities

200,000 apps

The iPad Experience

Video

Major Benefits Runs both iPhone & iPod Touch apps

functions & versatility

iWork for importing and editing of documents productivity

10 hours of battery life convenience

Large touchscreen comfort

iPad received very well

On Day 1

Within 80 days

Impact of iPad

Worldwide shipments of new PCs

lower than expected 3% in Q3

Dell’s U.S. shipments 4.9%

http://www.msnbc.msn.com/id/39660539

Impact of iPad

Sparked intense competition

Competitors jostle for market shareIntroduced competing tablets:

Samsung Galaxy Tab Blackberry Playbook

Impact of iPad

Entered eBook industry

iBook (eBook reader) vs. Amazon’s Kindle

eBooks sold in the iTunes Store

Impact of iPad

New mobile gaming possibilities

Interactive E.g. N.O.V.A

Impact on iPhone

Current Comparison All iPhone functions

Except call & text

Performs work-related tasks better Productivity suites Larger screen

Lower sales iPad 3.2 million vs. iPhone 8.4

million units soldhttp://www.apple.com/pr/library/2010/07/20results.html

Impact on iPhone

Future Expectations 7” iPad rumoured

Greater portability Limit to size reduction

Telecommunication capabilities Headset Competes with iPhone

Smartphones vs Tablets

  Smartphones TabletsFUNCTIONS Similar Similar.

No phone calls/smsSIZE Small BigBATTERY LIFE 1-2 days <10 hrsPROCESSING SPEED 1GHz up to 1.4GHzSTORAGE up to 32GB up to 320GB

PRICE US$85US$300 to >US$1000

http://www.itpro.co.uk/620302/smartphones-vs-netbooks-vs-tablets-which-is-best-for-you http://www.pcworld.com/article/186737/mobile_snapdragon_processor_to_hit_15ghz_dualcore_in_2010.html http://www.mobilemarketer.com/cms/news/research/4706.html http://www.mobilitysite.com/2010/08/android-tablets-get-prices-less-vapour/

What’s to come in the future?

+Integration

Will there be a clear winner?

Unlikely No one-phone-fits-allFactors:

User needs & preferences Future developments Compatibility synchronisation

Verdict: A few dominant players

Source: Gartner (August 2010)

Comparison of Market Share

http://www.gartner.com/it/page.jsp?id=1434613

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