Smartphone Market Trends

Justin Lee
 Players Types at 3G Era
Mobile
33%
Device
Makers
Competitor

Mobile
Internet
Co

r
Services

tito
mp

Internet

e
mp
eti
tor

Service Operator
33% Co 33%
Providers

Source: IBM Analysis

 Voice Content

Data Service
Device
Browser Internet
Challenge to
Mobile Device Makers
Voice Content

Data Service
Device
Browser Internet

Average selling price down

Challenge to
Operator
Voice Content

Data Service
Device
Browser Internet
 Challenge to
Operator
Voice Content

Data Service
Device
Browser Internet

Voice ARPU down

ARPU=average revenue per user
Challenge to
Internet Service Provider
Voice Content

Data Service
Device
Browser Internet
Challenge to
Internet Service Provider
Voice Content

Data Service
Device
Browser Internet

Mobile devices have become important nodes

 Voice Content

Data Service
Device
Browser Internet

Smartphone
What is
smartphone?
 Smartphone
is a small all-in-one device that is used for

communication
& computing
functions.
Source: Tech-faq
 Most devices considered

smartphones
today use an
identifiable
and
open operating system ,
often with the

ability to add applications.

Source: Wikipedia
OS
Modern Smartphone OS

Symbian OS
Modern Smartphone OS

iPhone OS
Modern Smartphone OS

BlackBerry OS
Modern Smartphone OS

Windows Mobile
Modern Smartphone OS

Android
Modern Smartphone OS

WebOS
 Linux Others
5% 2%

Windows Mobile
14%

Symbian OS
47%

BlackBerry OS
15%

iPhone OS
17%
Voice, SMS
Multiple Connection
3.5G, WiFi, Bluetooth

Personal Info. Management

Contacts, Calendar, To Do List

Internet Browser & Email

Multimedia
Photo, Music, Video GPS
On 24 June 1998, Symbian Ltd. was formed to exploit
the convergence between PDAs and mobile phones.

NOKIA
Ericsson Sony Ericsson

Panasonic Samsung

Motorola Psion
 User Interface Platforms for Symbian OS

S60 UIQ MOAP(S)

one hand operation touch close platform

Nokia N Series Sony Ericsson P Series NTT DoCoMo FOMA

Nokia N95,
is’s what
computers
have become
!"#$%&'!#$!
 S60 Touch launched by Q4, 2008

Nokia Xpress Music 5800 Nokia N97

Nokia to acquire Symbian,
make it open source by 2010

unified platform
with common UI framework
Symbian Foundation
new support
Most popular smartphone platform
Best smartphone features
Large global development community

Too Complicated
Slow
iPhone OS
Mac OS X based Platform for Apple Mobile Device

iPhone OS

iPhone iPod Touch

Mobile internet & entertainment
Direct manipulation UI
iPhone OS

Most attractive and usable smartphone

Best browser
App Store

No copy and paste

Apple’s control on 3rd party apps
BlackBerry OS
 Software Platform for BlackBerry

BlackBerry OS

BlackBerry Flip BlackBerry Bold

Wireless email
QWERTY Keyboard
BlackBerry Storm with Touch Screen
BlackBerry Storm with Touch Screen
BlackBerry OS

Best email experience

Good usability

Less choice
Bad web browser
Not media centric
 Win32 based Platform
combined with basic apps

HTC Touch Diamond Sony Ericsson XPERIA X1

Sync with Windows PC
Outlook& Office Mobile
Bad User Experience
Windows Mobile 7
focus on user experience
More choice
Advanced hardware
Design for business user
Special apps

Bad UI
Bad web browser
Linux based Platform for Mobile Device

T-Mobile G1
Open source platform

Integrated with
Google service

Mobile internet
 Open Handset alliance
Handset Manufacturers Software Companies

Semiconductor Companies

Mobile Operators

Commercialization Companies
No limitation
Ultimate geek phone

Lack of business function

No limitation
Ultimate geek phone

Lack of business function

Can’t sync with PC
webOS
Linux Based Platform
with Web Technology Display Layer

webOS

Palm Pre
Great User Experience
Cards
multiple activities at once
Information aggregation
Outlook, Gmail, Facebook contacts
in one place
webOS

Too early to tell.

Market Trends
 smartphones are driving
above-average growth
in global handset shipment
Overall Smartphone
27%
24%

9% 8%
7%

-2%
2008 2009 2010
Source: IDC / Dec 2008
 Pure-play smartphone vendors
have become super-profitable

Apple 35%

RIM 30%

HTC 26%

Nokia 21%

Source: Strategy Analytics / Jun 2008

Open Platform vs. Closed Platform
 Smartphone vendor ranking
changed last year.
Q3 07 Q3 08

51.4%
Nokia
38.9%
3.6%
Apple
17.3%
10.6%
RIM
15.2%
6.6%
Motorola
5.8%
2.7%
HTC
5.8%
25.1%
Others
17.0%
Source: Canalys estimates / Nov 2008
 Apple shows 480% market share gain
Q3 07 Q3 08

51.4%
Nokia
38.9%
3.6%
Apple
17.3%
10.6%
RIM
15.2%
6.6%
Motorola
5.8%
2.7%
HTC
5.8%
25.1%
Others
17.0%
Source: Canalys estimates / Nov 2008
 BlackBerry sees growth steadily
Q3 07 Q3 08

51.4%
Nokia
38.9%
3.6%
Apple
17.3%
10.6%
RIM
15.2%
6.6%
Motorola
5.8%
2.7%
HTC
5.8%
25.1%
Others
17.0%
Source: Canalys estimates / Nov 2008
 Apple and RIM are relative
closed platform
Features available

Linux
Whole OS
LiMo
Android
Core Apps

Symbian OS
User Experience
Windows Mobile
iPhone OS
Advanced Apps BlackBerry OS

Basic Apps

Some Public API Some Public API Some Public Code All Public Code

Source: Telefonica / Dec 2008 Platform openness

77% of iPhone purchasers
described themselves as

very satisfied
with their user experience.

Source: Adobe / 2008

Why?
Open platform
are theorically wonderful.
Open is a key to innovation.
iPhone Killer?
iPhone Killer?
iPhone Killer?
User Experience Matters
Apple and RIM
have full control of the
hardware and software
they use in their systems.
 More tight control systems
work better at real world.

Source: Business Week Technology and You / Nov 2008

Power of Open Source
WebKit: open source browser engine
Mobile Application Store
 34% of Smartphone owners
have not added an application to
their phone.

Source: Compete.com / Nov 2008

“I want to install applications on my smartphone,
but I don’t know where to find them.”

Carol, a smartphone owner

Source: Carol / Jan 2009

“If user don’t know how to add applications,
it’s a closed platform.”

Patrick, a smartphone owner

Source: Patrick / Jan 2009

iPhone owners
know how to add apps

34%

7%

Smartphone owner iPhone owner

Apple provide the
unified source
for iphone applications
Apple provide the
unified source
for iphone applications
 “I'm not aware of anything.”

“We have more applications and more

phones in the hands of people and that's what
matters at the end of the day.”

Scott Horn, a general manager in Microsoft's mobile communications business

Source: Cnet / July 2008

 Apps variety is NOT market share
BlackBerry Windows
Platform Symbian OS iPhone OS Palm OS
OS Mobile

HTC, HP,
Vendor Nokia etc. Apple RIM Motorola, Palm
Asus

Share 40% 17% 15% 12% 2%

Apps >12000 10000 18000 29000

Source: Canalys / Dec 2008

 Microsoft Skymarket

Apple App Store

BlackBerry Storefront

Mobile Application Store

Android Marketplace
Nokia Download!
Plam App Catalog
Next Generation UI
 Touch-Screen Phones
increased 130% last year
9.6million

4.2million

Sept. 2007 Sept. 2008

Source: comScore Media Matrix / 2008

Finger is the best stylus
Invisible UI
New Ecosystems Arising
 rays of rich-media applications available to the consumer;
tent and brand are critical;

Illustration of a hypothetic ‘Apple’ centered ecosystem

tem

iTunes Mac OS X
iPhones Safari
iPods
ndent
nue Mac PCs
ation TV
Apple TV
ting
yalty or
areness Future
Devices
Large Developer Community

evice Sales
unity

18
Sep 2008
 01 The new role of OEMs and Internet
playersMUSIC GAMES NAVIGATION UGC APPS

MyNokia
NOKIA Nokia Maps LifeBlog/
Nokia Music
Flicker

SONY ERICSSON ---- ----

SAMSUNG Life Diary ----

APPLE

GOOGLE Amazon ---- Android

Store

TELEFÓNICA ESPAÑA
Application Innovation & Open OS devices 5
How to Win?
Usability
Content
Solutions
“I realized my competition
was pen and paper, not
computers”
Jeff Hawkins, Founder of Palm Computing
Thank You!