smartphone market trends

Smartphone Market TrendsJustin Lee

33% 33%

33%Mobile

Device

Makers

Operator

Internet

Service

Providers

Mobile

Internet

Services

Competitor

Com

pet

itorC

om

petito

r

Players Types at 3G Era

Source: IBM Analysis

Service

Voice

Data

Device

Content

InternetBrowser

Device

Content

Service

Voice

Data

InternetBrowser

Mobile Device MakersChallenge to

Average selling price down

Voice

Data

Content

Service

Device

InternetBrowser

OperatorChallenge to

Voice

Data

Content

Service

Device

InternetBrowser

OperatorChallenge to

Voice ARPU down

ARPU=average revenue per user

Device

Content

Service

Voice

Data

Browser

Internet Service ProviderChallenge to

Internet

Device

Content

Service

Voice

Data

Browser

Internet Service ProviderChallenge to

Internet

Mobile devices have become important nodes

Data Service

Voice Content

InternetBrowser

Device

Smartphone

What is

smartphone?

is a small all-in-one device that is used for

Source: Tech-faq

Smartphone

functions.

communicationcomputing&

Source: Wikipedia

ability to add applications.

Most devices considered

smartphonestoday use an

identifiableand

open operating systemoften with the

,

OS

Modern Smartphone OS

Symbian OSSymbian OS

Modern Smartphone OS

iPhone OSiPhone OS

Modern Smartphone OS

BlackBerry OSBlackBerry OS

Modern Smartphone OS

Windows MobileWindows Mobile

Modern Smartphone OS

AndroidAndroid

Modern Smartphone OS

WebOSWebOS

Others

2%Linux

5%

Windows Mobile

14%

BlackBerry OS

15%

iPhone OS

17%

Symbian OS

47%

Internet Browser & Email

GPS

Voice, SMS

Personal Info. ManagementContacts, Calendar, To Do List

Multiple Connection3.5G, WiFi, Bluetooth

MultimediaPhoto, Music, Video

Motorola Psion

NOKIA

Panasonic

Ericsson Sony Ericsson

Samsung

On 24 June 1998, Symbian Ltd. was formed to exploit

the convergence between PDAs and mobile phones.

Nokia N Series Sony Ericsson P Series NTT DoCoMo FOMA

User Interface Platforms for Symbian OS

S60 UIQ MOAP(S)

one hand operation touch close platform

Nokia N95,

!"#$%&'!#$!

computers is’s what

have become

Nokia Xpress Music 5800 Nokia N97

S60 Touch launched by Q4, 2008

Nokia to acquire Symbian,make it open source by 2010

unified platform with common UI framework

Symbian Foundationnew support

Most popular smartphone platform

Best smartphone features

Large global development community

Too Complicated

Slow

iPhone OS

iPhone OS

iPhone iPod Touch

Mac OS X based Platform for Apple Mobile Device

Direct manipulation UI

Mobile internet & entertainment

Most attractive and usable smartphone

Best browser

App Store

No copy and paste

Apple’s control on 3rd party apps

iPhone OS

BlackBerry OS

BlackBerry OS

Software Platform for BlackBerry

BlackBerry BoldBlackBerry Flip

Wireless email

QWERTY Keyboard

BlackBerry Storm with Touch Screen

BlackBerry Storm with Touch Screen

Best email experience

Good usability

Less choice

Bad web browser

BlackBerry OS

Not media centric

Win32 based Platformcombined with basic apps

HTC Touch Diamond Sony Ericsson XPERIA X1

Outlook& Office Mobile

Sync with Windows PC

Bad User Experience

Windows Mobile 7focus on user experience

More choice

Advanced hardware

Bad UI

Bad web browser

Design for business user

Special apps

Linux based Platform for Mobile Device

T-Mobile G1

Open source platform

Mobile internet

Integrated withGoogle service

Open Handset alliance

Mobile Operators

Handset Manufacturers Software Companies

Semiconductor Companies

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

webOS

Palm Pre

Linux Based Platformwith Web Technology Display Layer

Cardsmultiple activities at once

Great User Experience

Information aggregationOutlook, Gmail, Facebook contacts

in one place

Too early to tell.

webOS

Market Trends

Overall Smartphone

smartphones are driving

in global handset shipment

above-average growth

24%

9%

27%

8%

-2%

7%

2008 2009 2010Source: IDC / Dec 2008

Source: Strategy Analytics / Jun 2008

Pure-play smartphone vendors

have becomesuper-profitable

Apple

RIM

HTC

Nokia 21%

26%

30%

35%

Open Platform vs. Closed Platform

Nokia

Apple

RIM

Motorola

HTC

Others17.0%

5.8%

5.8%

15.2%

17.3%

38.9%

25.1%

2.7%

6.6%

10.6%

3.6%

51.4%

Q3 07 Q3 08

Source: Canalys estimates / Nov 2008

Smartphone vendor ranking

changed last year.

Nokia

Apple

RIM

Motorola

HTC

Others17.0%

5.8%

5.8%

15.2%

17.3%

38.9%

25.1%

2.7%

6.6%

10.6%

3.6%

51.4%

Q3 07 Q3 08

Source: Canalys estimates / Nov 2008

Apple shows 480% market share gain

Apple3.6%

17.3%

RIM

Nokia

Apple

RIM

Motorola

HTC

Others17.0%

5.8%

5.8%

15.2%

17.3%

38.9%

25.1%

2.7%

6.6%

10.6%

3.6%

51.4%

Q3 07 Q3 08

Source: Canalys estimates / Nov 2008

BlackBerry sees growth steadily

RIM10.6%

15.2%

Source: Telefonica / Dec 2008 Platform openness

Features available

Advanced Apps

User Experience

Core Apps

Whole OS

Basic Apps

iPhone OS

BlackBerry OS

Symbian OS

AndroidLiMo

Linux

Windows Mobile

Some Public API All Public CodeSome Public CodeSome Public API

closed platformApple and RIM are relative

77%very satisfied

with their user experience.

of iPhone purchasers

described themselves as

Source: Adobe / 2008

Why?

Open is a key to innovation.

are theorically wonderful. Open platform

iPhone Killer?

iPhone Killer?

iPhone Killer?

User Experience Matters

they use in their systems.

Apple RIMand

have full control of the hardware and software

More tight control systems work better at real world.

Source: Business Week Technology and You / Nov 2008

Power of Open SourceWebKit: open source browser engine

Mobile Application Store

Source: Compete.com / Nov 2008

have not added an application to

34% of Smartphone owners

their phone.

“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

Smartphone owner iPhone owner

7%

34%

iPhone ownersknow how to add apps

Apple provide the

for iphone applicationsunified source

Apple provide the

for iphone applicationsunified source

“I'm not aware of anything.”

Source: Cnet / July 2008

“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: Canalys / Dec 2008

Apps variety is NOT market share

Platform Symbian OS iPhone OSBlackBerry

OS

Windows

MobilePalm OS

Vendor Nokia etc. Apple RIM

HTC, HP,

Motorola,

Asus

Palm

Share 40% 17% 15% 12% 2%

Apps >12000 10000 18000 29000

Mobile Application Store

Apple App Store

Android Marketplace

Microsoft Skymarket

Plam App Catalog

BlackBerry Storefront

Nokia Download!

Next Generation UI

Touch-Screen Phones

increased 130% last year

Sept. 2007 Sept. 2008

9.6million

4.2million

Source: comScore Media Matrix / 2008

Finger is the best stylus

Invisible UI

New Ecosystems Arising

18

New Ecosystems Arising

Promoting

Brand Loyalty or

Brand Awareness

Additional Device Sales

Opportunity

New

Ecosystem

Independent

Revenue

Generation TV

iPodsiPhones

Mac PCs

Future

Devices

Apple TV

iTunes Mac OS X

Safari

Large Developer Community

• New business models will eventually build an ecosystem (e.g. iDevice);

• Shared or Exclusive? Anyway, vendors at the center of the ecosystem will

flourish with arrays of rich-media applications available to the consumer;

• Usability, content and brand are critical;

Illustration of a hypothetic ‘Apple’ centered ecosystem

Source: Strategy Analytics / Sep 2008

TELEFÓNICA ESPAÑAApplication Innovation & Open OS devices 5

The new role of OEMs and Internet players

NOKIA

SONY ERICSSON

SAMSUNG

APPLE

GOOGLE

MUSIC GAMES NAVIGATION UGC

Nokia Music Nokia Maps LifeBlog/Flicker

----

Life Diary

----Amazon

APPS

Android Store

----

----

MyNokia

01

How to Win?

UsabilityContent

Solutions

“I realized my competition

was pen and paper, not

computers”

Jeff Hawkins, Founder of Palm Computing

Thank You!