Technological Change: A Crucial Period in the Smartphone Market

A good piece in the Observer today which analyses the potential competitive developments in the global smartphone market in the run-up to Christmas 2012.

Competition in the smartphone market has always been pretty intense, but the next few weeks and months may be critical in determining the longer-term competitive structure of the market.

The convergence of several key trends is shaping the nature of competition:

Firstly, the migration of consumer and business device use from desktop & laptop to mobile devices. Smartphones and tablets are rapidly becoming the device of choice for online access and personal communication.

Secondly the roll-out of faster online connections and data access; 4G networks are almost here and they will support much greater use of mobile devices to access online services.

Thirdly, the impact of some significant corporate activity in the last year or so; notably the acquisition by Google of Motorola Mobility and Nokia’s decision to abandon its own smartphone platform (symbian) and jump into bed with Microsoft.

Nokia, in particular, has struggled to sustain its competitive position in the mobile market and the article suggests that the launch this week of its new Microsoft-powered phone is the “last throw of the dice”.