Mobile Phones And The Global Growth Momentum

- 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.

Trends in the market include the growing number of people within the 15-29 age range. Also, phones are being used for much more than just calling, other functions like texting and music playing capabilities have dominated much of a user’s data usage. As for market characteristics, the mobile industry has reached almost 50% penetration with about 130 million subscribers, and reaching its maturity. The cost structure has been very confusing for consumers, with hidden fees, overcharges, and lacks to reward users who do not use their plans to the max. And finally, channels include all service provider stores and retail consumer stores, for example, Target, Walmart, and Best Buy.

CTIA – The Wireless Association reports that the number of text messages sent in the US rose from 362.5 billion in 2007 to an astonishing 2.19 trillion in 2012. In light of

Instant gratification has become the social norm in this generation but is diminishing the quality of communication. Cell phones have changed massively in the past few years, making communication weaken each time cell phones are updated. At first, cell phones were just used for calling. Calling was the only operation that they were capable of and most of the time calling was not even convenient on a cell phone. Although the concept of texting has been out for decades, actual texting became available to all society in 1994 (Turrettini). Texting instantly

SMS / Text Messaging – SMS is short for Short Message Services. Text messages are a way to send and receive messages over cellular data networks. Also, SMS / Text Messages can only contain up to 160 characters per packet.

The telecommunications industry has steadily rebound since 2009; this is because of the growth of not only the mobile and broadband structures, but also the increase of the video market. In Figure 1, the projected outcome is indicates a steady increase in the new 4G mobile broadband networks which will fuel continued wireless growth. “Business customers in particular will continue to use this technology to expand their capabilities beyond the desktop computer. Emerging markets such as China, India and Latin America are expected to see strong growth,” (Verizon, 2011).

Today in our society texting is a major means of communicating with one another. Most people in our community own phones that include the advantage to use text messaging. Text

Texting is our number one form of communication. In 2012, Americans sent over 69,000 text messages a second. Since then, the number of monthly text send increased by more than 7,700% over the last decade, making

Initially, the telephone replaced the telegraph. Today, cell phones and smartphones have replaced the telephone. In fact, cell phones and smartphones are the desired communication methods worldwide. The use of cell phones and smartphones has increased in recent years for two primary reasons; its portability, and the fact that it allows people to stay connected just about anywhere around the globe. In addition to functioning as a traditional telephone, cell phones and smartphones also provide some of the following benefits: sending text messages to other users, making video calls (i.e. Skype), accessing E-mail (i.e. Gmail and Hotmail), and browsing the Internet and social networking websites.

Since the technological phenomenon towards the end of the 20th century, text messaging has been widely used by cellphone users, specifically teenagers, in order to get their conversations across easier and quicker in a very convenient way. In the modern technology world, people have become so accustomed to the idea of

Recently a growing form of communication for organisations. It is time efficient way of sending information to a large number of reciepntants. It is cost effective and more likely to reach the receipatnt as they are likely to check their mobile telephone several times throughout the day. Unfortanaley text messages can be open for interpretation of tone or mood. It can also be inappropriate for some organistation communication.

For many years, there has been many ways to communicate, whether it is from smoke, animals, Telegraph, radios and telephones, the cellphone is the best way to communicate. Throughout generations, there has been many improvements and changes made to the cellphone that made it possible for the cellphone to replace computers and cameras. Nowadays cellphones such as iPhone and Android are not only used for texting and calling, they are now used for video calling, browsing the internet, taking pictures and much more.

Mobile phones have become a necessity for life, and without this thin gadget, many people would feel incomplete. We now use mobile phones in our everyday life as a phone, voice recorder, diary, alarm clock, watch and for making and confirming appointments, dealing with clients etc. Mobile phones are for many, fundamental when organising their lives. Mobile phones are not simply an electronic gadget, and it is difficult to define in one way about the usage of mobile phones. With the advances of technology, mobile phones are becoming a way of life. Mobile phones are not used as just communication tools but are also considered as devices which have strong communication networks along with the other functionalities such as audio solutions, FM

In the second quarter of 2007, Motorola had shipped 35.5 million mobile handsets whereby Nokia shipped 100.8 million handsets. Nokia emerged as a leader in the global mobile phone industry, holding a market share of 38.0 percent, by the 2nd quarter of 2007.

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