An Analysis of the Industry
Luis Miranda, Dianne Prince, Katherine Roberts, and Gabriela Roman
University of North Alabama
This paper was prepared for Strategic Management, MG 498-I01, taught by Dr. Balch.
Table of Contents
Executive Summary 3
Going Mobile? : An Analysis of the Industry 4
Revenue Size and Other Relative Statistics 5
Macro- Environmental Factors 6
Major Competition and Their Shares 9
Industry Leaders by Vendor 11
Industry Leaders by Market Shares 13
Industry Leaders by Operating System. 14
Smartphones Concentration Levels 15
Industries that Affect the Smartphone Industry 16
Segments Within the Smartphone Industry 18
The Factors for Success 19
Conclusion and Recommendations 21 …show more content…
The smartphone market is one of today’s most rapid growing industries. A smartphone is a technologically advanced communication device that not only performs the actions of a basic mobile phone, but it also allows the consumer to personalize the device with installable applications from an Internet based store for maximum functionality (Smartphone, 2015). A recent annual report from Mary Meeker on Internet trends reported that 87 % of young adults, those between the ages of 18 and 34, who own smartphones are never separated from them. Her report also showed that 4 out of 5 young adults say that they reach for their smartphones as soon as they awaken each day (Hackett, 2015). The smartphone industry is made up of a number of firms located around the world that design, manufacture, and sell smartphones in various markets. The major industry competitors are Samsung (South Korea), Apple, Inc. (U.S.), Lenovo (China), Huawei (China), & L G Electronics (South Korea). These were the top five competitors for the first quarter 2015 (IDC, 2015). The smartphone industry changes quickly due to new products being introduced almost weekly. The industry is represented by fast developing technology and designs, short product life cycles, aggressive pricing, quick imitation of products, technological advancements, and highly price sensitive consumers. The rate of technological change has
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Some could argue that Smartphones are the most vital innovation in mankind's history (Doward 16). With all the imperative tasks that they could execute, it has become part and parcel of peoples’ lives. It has reached a point where almost every person cannot go through the day without checking their cell phone. Individuals
- The smartphone industry is very capital intensive due to high research and development (R&D) costs and expensive manufacturing facilities. This raises the barrier of entry and makes it difficult for small companies to enter. Many of the firms that compete in this industry have existing long-term contractual relationships with mobile carriers and benefit from their significant brand equity. These companies also have a great deal of knowledge and experience through economies of learning, which gives them a major cost advantage over smaller entrants. New entrants will have difficulty getting carriers to adopt their phones because many carriers are already in profitable deals with the large mobile phone manufacturers.
“More than three billion people worldwide now use the internet (Time), and 80 percent of them access if from their smartphones” (Smart Insights). A smartphone is a mobile phone that performs many of the functions of a computer, typically having a touchscreen interface, and much more. There is an abundant amount of smartphone brands out there in the world and while they all cost different prices, they all perform the same job. Each person uses their smartphone for various reasons, whether it’s for work or to make calls or texts. Smartphones have changed society in various ways, both good and bad. Although countless individuals think that smartphones have ruined American society, smartphones have actually benefited society because of more safety precautions, information on hand, and entertainment.
Over the last four decades, mobile devices have become the trademark of our society.cell phones and other mobile devices have inundated our society At any given time; we can see drivers talking or texting in a moving vehicle. According to Brenner (2013), 87% of American adults and 78% of teenagers own a cell phone. The scary part is that almost two-thirds of
Executive summary Raising smartphone estimates Forecasting smartphones based on TCO Linking our TCO analysis to the addressable market Smartphone volumes to grow at CAGR of 26% Price point work also shows 1.1bn units long term Significant growth being seen in the low end A specific growth opportunity within China LTE could be a game changer Improving device availability LTE speeds could drive new services Coverage expansion of LTE networks Aggressive rollout plans in US and China An upgrade cycle like none before A war of ecosystems….. Apple – the iOS and Mac ecosystem Google/Android – a one trick pony? Windows 8 – what about the upgrade cycle? Developer dynamics are critical Smartphone economics Carriers have seen margin pressure Smartphone economics What can carriers do? Smartphones – winners and losers Apple scope for share gains exist on multiple fronts Samsung – a strong second Nokia – heading for third position in smartphones Multiple Android vendors may struggle HTC – still bleeding share Motorola Mobility/Google – losing steam in the US Sony – change of
In society today, almost everyone is guilty of spending too much time on electronic devices, cell phones in particular. Teens and parents alike can’t go for five minutes without checking for new notifications. According to Kelly Wallace in her article “Half of Teens Think They’re Addicted to Their Smartphones,” cell phone usage has become a real problem which affects not only teens, but adults as well. Within the article, it is stated that, “Sixty-nine percent of parents check their phone at least hourly compared to the 78% of teens who say they do that” (Wallace). Considering these alarming statistics it's no wonder that people have begun to admit to the over usage. Parents in particular worry about their teens over usage and have even gone
THE STRENGTHS OF BEST BUY Good customer satisfaction levels, especially with women, who have the most consumer electronics purchases in the United States. An ability to retain customer loyalty. Marketing expertise in the electronics sector.
Whether you’re getting directions, calling a loved one to let them know you’re running a little late, or checking Facebook to catch up with an old high school friend, cell phones have began to dominate our technology based society due to their easy accessibility and endless uses. While “nine-in-ten Americans own a cell phone and nearly two-thirds own a smartphone,” the cell phone is has become one of the only things the vast majority of people deem necessary in their life (Rainie et al., 2015). “Ch 1: Always on Connectivity,” written by by Lee Rainie and Kathryn Zickuhr, explains how dependent adults really have become of our cell phones. “8 Fascinating Facts About How Teens Use The Internet And Social Media” elaborates
Smartphone market is fast-moving and very high competitive due to intense competition between two big smartphone producers, Apple and Samsung. At the beginning, Apple dominated this market solely by introducing a new innovative type of smartphone by Steve Jobs that has revolutionized people lifestyle and mobile industry. A few years after launching iPhone, a new fast following competitor, Samsung came into this market, and their sales have outperformed Apple from the year 2011 (According to Chart A1 in Appendix). In term of developing their product, Samsung has created its products by following Apple’s technology since the beginning of producing its smartphone, therefore there are many patent lawsuits between them. Since Steve Job passed away, Apple has continued to develop its core competence, which is an innovation of new type of smartphone that could help them to take back their market share from its rival, Samsung. Nonetheless, the competition between Apple and Samsung will still continue intensively in the future.
Recently, well known giant phone producers have launched a number of smart phones which are comparable to the iPhone. These new comers include some major phone producers: Nokia, Blackberry, Samsung, LG, HTC, Google, Microsoft, and Windows. Their smart phones also have a large touch screen, WiFi, 3G, fast internet browsers, constantly updated application, and modern operating systems such as Android, Linux and Windows. Although some of them such as Blackberry and Nokia differentiate their products from the iPhone by using QWERTY keypad, most of the smart phones are now having nearly the same features and give users pretty much similar experiences. The smart phone industry is now getting closer to the oligopoly structure, where several firms with similar products are competing with each other. In order to be able to compete with Apple and compete with each other, the
Pew (2017) examined the change in ownership of smartphones over time in the United States, the relationship to owning other mobile devices, and the prevalence of smartphone dependency. American are increasingly connected to the “digital” world via smartphones and other mobile devices. According to Pew research surveys in 2017 over 95% of Americans own a cellphone of some kind while 77% own and operate a smartphone. The percentage of smartphone ownership has increased tremendously compared to the first survey conducted in 2011, where only 35% of Americans had a smartphone. Smartphone ownership also exhibits a wide variation based on age, household income and educational attainment while maintaining a correlation with ownership of other mobile devices.
Technology and innovation are advanced every year making the industry even more competitive. Cell phone companies that design and make evolutionary upgrades are emerging into the market to be more competitive.
The two big players nowadays that supply smartphones are American based Apple, Inc. and South Korean established Samsung Group. Essentially their two big products nowadays are the Apple iPhone 5, and the android device from Samsung with their Galaxy S4. These two companies have been in the top for quite a while and it so it seems as if these two will shortly become a duopoly, but lets erase that ugly thought for now as there always will new competition emerging.
1. The Smartphone industry is a well established market and the threats of a new entrant is low, as technology needed to rival the devices already available is quite advance if they want to differentiate from them
There are numerous global players like Apple, Nokia , Sony , and many more that cater to the regular income households demanding family and attracting there child with there expanded features. Then there are other competitors of LG and Samsung which is Apple , that is because people is attracted towards there advanced ios technology which is getting much and much better with respect to the Samsung technology of android.