Market Analysis On Smartphone'S Operating Systems

Introduction

The purpose of this report is to prepare market analysis of Operating Systems for Smartphones. Over the last decade, mobile phones have become one of the major means of communicating both voice and data. Today, mobile phone is virtually a social necessity for most of us. Increase in computing power of mobile phones, improved bandwidth of wireless technologies, and internet technology have led to the introduction of Smartphone which provides greater levels of intelligence to its users. This intelligence lies partly in the phone itself and partly in the smarter-network in to which it connects. This intelligence is a potent combination of hardware used to build the Smartphone and software i.e., operating system which runs on the hardware of the Smartphone.

Smartphone

Smartphone is a mobile phone offering advanced capabilities beyond a typical mobile phone, often with personal computer like functionality.

(symbian.com) (palm.com) (blackbeery.com)

Smartphone Users

Business and innovative users are the main users of Smartphone today, due to its high price. As technology advances, cost of Smartphone might come down gradually, as it happened with personal computers. Then, all of us might become the users of Smartphone.

Operating System

An operating system (OS) is any software required to start up any computer or any electronic device that is designed to perform certain special functions such as opening a file, sending an electronic mail and so forth. OS functions as an interface between the user and hardware of the device. Windows, Linux, Symbian are examples of OS.

Smartphone's OS Users

OS can be used by Smartphone manufacturers such as Nokia, Palm, Blackberry, Sony Ericsson, Samsung, DoCoMo, LG, and BenQ.

Smartphone versus Mobile Phone

Smartphone can be distinguished from mobile phone by the fact that Smartphone provides not only all the features of a mobile phone but also the following additional functionality to its users.

* Wireless e-mail, Internet, Web browsing, and fax

* Local and remote data transfer between Smartphone and computers

* Control of computers remotely

* Remote control of home or business electronic systems

* Intercom function

* Interactivity with Unified Messaging

* Online banking

* Touch Screen

* QWERTY key board

* Ability to read documents in a variety of formats such as PDF and Microsoft Word etc.,

* Local Area Network connectivity

Why Smartphone Needs an OS

Smartphone needs an identifiable OS to provide enhanced data processing, connectivity or entertainment- in contrast to regular mobile phone which only support limited number of features that are built in the phone itself.

Nature of Product

OS or any other software for that matter comes under the category of industrial good- it is almost always used as a component in a larger, engineered system. OS costs nothing i.e., almost free to manufacture and it never wears out. Software fixed costs are high (very high - too high) but its variable costs are very minimum or almost zero. (The Economics of Software, 2004)

The Smartphone has been a product for the innovative user, who is eager for new technology, and therefore able to distinguish the advantages and disadvantages of every OS. As more people start using Smartphone due to its features and possibilities, the priority for OS specific issues is getting lower importance. On the other hand the integration of Smartphone in operational processes of companies requires specific functionality and features of the OS.

Market Overview

The market for both Smartphones and their OSs is one of the more dynamic consumer markets, with considerable developments since 2005. Smartphones were initially referred as handsets with operating systems, came in to the market in the early 2000s, and supported native third party applications. The primary focus of these devices was on messaging, provision for QWERTY key board, and e-mail functionality. Subsequently, handset manufacturers launched several models based on numerous form factors targeting diverse segments.

Today, Smartphones encompass wide range of devices, ranging from voice-centric handsets to converged multimedia devices integrating cameras, media players and personal navigation functionality into a single unit. Handset manufacturers gradually adopt OS to reduce development time and costs for the new models. Market size of Smartphones has grown from less than one million units in 2001, to more than 100 million units in 2007 already.

(Get a Deep inside into Smartphone operating systems industry, 2007)

Market Size

Currently, the worldwide market size for Smartphones is only about 110 millions and this becomes about 6 percent of total mobile phones globally. Market analysts expect that the share of Smartphones might grow about 18 to 20 percent by the 2012. Hence, going forward the demand for Smartphone's OS is expected to rise significantly. (The coming Smartphone Operating System wars, 2007)

Demand and Supply

Demand Factors

Currently the demand for Smartphones is low due to the following reasons.

Cost of Smartphone

Currently, the demand for both Smartphones and their OS is negatively impacted by the high cost of Smartphones. For most of the mobile phone users today, current high prices of Smartphones are unaffordable.

Non usability of Advanced Features

Majority of the people who can afford high prices of Smartphones today, are reluctant to buy them as most of the advanced features of Smartphones are not the ones that are required for their regular use.

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