In the next 5 years, a fierce competition among Smartphone brands is about to break out and who will be the winner is going to be announced. Piper Jaffray predicts that Google Android system will occupy a large market share and it is Google that will be the winner, not Apple iPhone though it is now under the spotlight.
“According to our estimation, in 2010 Google will control about 14.9% market share of Smartphone and it will reach 23.2% in 2012; while Apple iPhone can control 15.9% in 2010 and just increase to 17.6% in 2012.”
In the following 5 years, cell phones with Android system may conquer over half the Smartphone market. At the same time, Apple will also control 20%-30% market share of Smartphone. Consequecely, what will happen to other Smartphone brands, such as Nokia and RIM? What is going on for their market position in the future Smartphone market? And what does Android rely on to quickly occupy 50% market share?
Until now RIM and Nokia still haven’t developed any systems that can compete with Android; instead, they turn to the third party system. We believe in the long run Nokia and RIM will lose the competition in Smartphone market because they don’t have the core software competitiveness. Two days ago, in Institute of Financial Accountants (IFA) in Berlin Germany, both LG and Samsung issued their own cell phone with Android 2.2 system. This also proves Android’s development has become an irresistible trend.
Samsung I5510 with Android2.2 Slide QWERTY Keyboard
LG Optimus One (P500)
In PC era, it is the chip, operating system and application that cost most. Microsoft holds two Windows operating system and office core appliance, and Intel owns high-tech chip. For every computer or notebook produced, manufacturers have to pay more than $100 commission to these two companies. It is more and more hard to make innovations to increase profits nowadays in PC market. When it comes to Smartphone era, though there exist some large brand companies such as Simbian, RIM, WinCE and Ios, Android system, which is free open source, almost takes up the whole Smartphone market. Besides, there are several manufacturers producing Android chip in the America and Asia. MTK, which is famous for its Shangzhai cell phone chip system, also announces that they will produce Android cell phone chip in large volumes, ready to enter China mainland Smartphone market. Since it is free cost to apply Android system, the cost of cell phones carrying the Android system reaches the lowest unprecedentedly. Thus it is not strange that so many manufacturers tend to apply Android systems. iphone exclusive whole series appliances improve customers’ cell phone experience, and hardware, operating system and stores are all Apple’s products. However, it is opening up that is more popular to people now. In the long run, iPhone can’t catch up with Android to take up half Smartphone market share.