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Published on: November 24, 2010
Type of content: WHITE PAPER
Length: 5 pages
The Smartphone market is characterised by increasing competition on one hand and healthy growth prospects in the medium-term on the other. Barriers to entry are high for most players, owing to the global nature of the mobile industry and the consequent financial strength required to enter the market. But for certain companies, in business areas which are peripheral to the communications industry, the barriers to entry have come down significantly. Even five years ago, the degree of specialisation required for operators to enter the smartphone market was significant enough to deter new entrants from outside the industry itself. More recently several vendors have embarked upon successful Smartphone strategies, Apple with the launch of the iPhone being the most successful. In many ways, the IPhone, and in particular the combination of the iPhone with the Applications Store, has revolutionised the entire mobile market. By linking the hardware device- the smartphone- to a content delivery platform- the App store- Apple has managed to create a powerful hardware/ content combination. In one initiative Apple removed one of the main conundrums within the industry- how to generate revenue out of content. As an industry, the smartphone market has defied the trends both of the broader handset market and the global economy. Though Apple is the current darling of the smartphone market, other carriers have also achieved impressive results such as RIM (Research in Motion) HTC (High Tech Computer) and even Nokia. Other players, such as Motorola, Palm, until its acquisition by HP, and Sony Ericsson have suffered in the last eighteen months to two years. For several reasons discussed within Juniper Research’s latest report, the number of players in the market is set to increase, with the advent of the likes of Dell, Acer and Microsoft and HP, through its purchase of Palm, to the market.
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