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Smartphones Are Taking Over
by Jeff Kagan
We have watched the wireless industry grow and change over the last twenty five years, but everyone has been surprised by the level of transformation the entire industry is now going through. Over the last 4 or 5 years smart phones have taken over. Before that RIM Blackberry and Palm lead the space. Then suddenly everything changed. Today, it is led by the Apple iPhone and Google Android. What is coming next?
This question is important for customers, investors and workers. We have seen past industry leaders suddenly struggle. I remember giving a speech a year and a half ago saying how Nokia is not just stumbling, but is in serious trouble. Similar to what Motorola had gone through during the last decade.
I had several questions from the audience who thought I must have been crazy. Yet today it has become obvious, Nokia is indeed struggling. They have a new CEO and are trying to piece together a new future partnering with Microsoft.
Will they be successful? We will see what happens next. The industry changes quickly. This is similar to Motorola who led the industry until ten years ago. They struggled for the past decade until they finally partners with Google with the Android devices. The company is not completely recovered by any stretch of the imagination, but they are once again growing. That is good.
HTC is a new company to the smart phone space and has faced their share of challenges, but they are growing rapidly. They have doubled sales of smart phones and that is healthy growth. Like Motorola that success has come from the Google Android space.
Google has become very successful in the wireless space and they are just in the first inning. They want to change the way we live and giving us a hand held remote control is part of it. We will use these phones for calls and messaging and web access, but also for banking and watching live TV and movies and setting our alarm at home and checking the status of everything and communicating with our doctors improving our healthcare and much, much more.
Growth in wireless comes from more than just AT&T Mobility, Verizon Wireless, Sprint Nextel and T-Mobile.
The same thing is happening among the entire sector of smart phone makers. Companies like Samsung, Sony, LG, Sanyo, Pantech, HP, Casio, Nexus and Kyocera are either remaking themselves or jumping into this brand new space.
Today we are closing in on 300 million cell phones in the US market. Smart phone sales rates have skyrocketed from the 15% level to over 50 percent. Advertising and marketing is all about smart phones. Apps are exploding from a few hundred to a few hundred thousand over just the past few years, and are still growing rapidly.
The wireless industry is transforming itself again. We cannot look at successful companies today and think they will always be that way. Over just the past couple years we have seen past leaders whither and new companies take over. That quick pace will continue for years to come.
This means the opportunities and the challenges are intensified for workers, investors and customers. Staying on top of this industry can be crazier than ever, but this industry is one of the few in this weak economic time that is booming. We may be willing to give up many things, but wireless is still going strong.
Keep you eye on this space. It is quickly changing and full of surprises.
About the Author
Jeff KAGAN is a Tech Analyst, Columnist, Author, Speaker and Consultant. He has followed the industry for 25 years and has worked with many companies. Visit him on the web at jeffkagan.com
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