The Battle for Supremacy in the Smartphone Business
This market insight provides a perspective on how the smart phone market is evolving, especially with regard to the integration of hardware and software. The insight discusses the Microsoft-Nokia transaction in detail, and analyzes its potential impact upon the market. The insight also relates to the strengths that a smartphone produced by the Microsoft-Nokia combine could possess.
Smartphones have become a ubiquitous commodity over the past few years, since the introduction of the iPhone and Android-based phones.
Various estimates point out that the global smartphone user base has now crossed billion users worldwide.
Growth in the smartphone market has now shifted to emerging markets that are more price sensitive and value conscious, constraining the margins of established participants such as Apple and Samsung while leveling the playing field for participants that compete on lower margins such as Huawei and other Chinese contract manufacturers.
Even Apple has introduced the relatively cheaper iPhone 5C for emerging markets having realized that penetration at the higher end of the market has bottomed out.
Mini versions of flagship phones are also being released—HTC One Mini, Galaxy S3/S4 Mini—in order to bring price points down for consumers, to increase market share of individual brands and improve penetration in the value-conscious segment.
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