The Mobile Phone Market in 2010
Wednesday, 20 January 2010
Growing competitiveness
Despite the financial crisis during 2009, the high-tech sector managed to keep afloat and even profit compared to other industries.
Further recovery and increased competition is expected in 2010 due to the introduction of new products and technologies such as the Google phone. It is useful to analyse how the insertion of Nexus One (Google's smartphone) will influence mobile phone market.
First, there will be one more player trying to capture a share of the market from the leaders such as IPhone, Blackberry, HTC and Nokia. As a result, some tension has already risen due to similarity between the smartphone and the IPhone. Until now, the role of Google in the mobile phone's market was limited to the Android (Google' mobile operating system). With the introduction of Nexus One, however, Google becomes a direct competitor in that industry.
Market share changes
We cannot expect significant reversals (at least in the first half of 2010), regarding eventual changes in market share. It is true that the introduction of Google's phone has generated enormous international interest and discussions, but the hype may subside before Nexus One becomes available worldwide. In mean time, Nokia, world leader in cell phone production, is expected continue gaining share worldwide. The competition of the five main competitors may be intensified by handset makers such as Motorola. The American giant in communication technologies has announced the introduction of MOTOROI, the first smartphone in Korea with an Android 2.0 operational system. Furthermore, mobile services provided by Google will make their first steps on the Korean market.
This situation predicts an interesting competition for the Asian market. While IPhone continuous to gain share and popularity in many Asian countries, Motorola could intervene with its new model.
In case that Android satisfies the needs and exigencies of Korean customers, the worldwide launch of the Google phone (also powered by Android) may reshape the market by targeting the Asian gadget lovers. This is the introduction of Nexus One is expected to shift the balance of power on the market.
