Transcript
Smartphone Industrial Analysis
Project Smartphone Industry
What Is a SMARTPHONE?
Mobile phone with more advanced computing capability, connectivity, advanced multimedia capabilities and the ability to install third-party software than basic features of phone.
Smart Phone and Feature Phone
SMARTPHONE FEATURE PHONES
Uses of smartphones?
• Text Messaging/SMS
• Social Networking
• Streaming Online Music
• Video / Mobile TV
• Mobile Banking
• Location Based Services/GPS
• Applications
• Web Browsing
• Mobile Shopping
• Barcode or QR Scan
• NFC/Mobile Wallet
• Games
• News
History
• 1995 The first smartphone, the IBM Simon
• 1996 Nokia launched Nokia 9000
• In early 2000, the Ericsson R380 was released by Ericsson Mobile Communications, and was the first device marketed as a "smartphone“
• The first catalyst of the expansion of the smart phone market was the release of RIM’s Blackberry series in 2001.
• The impetus for the expansion of the smartphone market was the release of Apple’s innovative iPhone in July. 2008.
Major Events in History
• 1996 First Windows CE Handheld PC devices are introduced.
• 2000 Symbian becomes the first modern mobile OS on Ericsson R380.
• 2002 Microsoft's first Windows CE (Pocket PC) smartphones are introduced.
• 2007 Apple iPhone with iOS is introduced as an iPhone.
• 2008 OHA releases Android 1.0 with the HTC Dream
• 2009 Samsung announces the Bada OS with Samsung S8500.
• 2010 Windows Phone OS phones are released.
• 2013 BlackBerry released BlackBerry 10.
• 2013 Google release Android Kitkat.
• 2014 Microsoft release Windows Phone 8.1 in February 2014.
• 2014 Apple release iOS 8 in September 2014.
Classification of Smartphones
In terms of Money
Lower End – Below 12k
Mid Range - 12K to 24 K
High End – Above 24 K
Trend in market
• Hardware TrendRAM, MEMORY, SCREEN, BATTERY,
Shape, Size and type of Smartphones
• Software Trend
• Utility
• LTE – 2G – 3G – 4G
• Price
Major OS Platforms
Current software platforms
Android
iOS
Windows
Blackberry OS
Major Companies
SMARTPHONE1.75 Billion38.4%
FEATURE PHONES2.8 Billion61.6%
4.55 Billion Mobile Phones are there worldwide
Smartphone market size and value
The global smartphones market is estimated to reach $150.3 billion in 2014 from about $55.4 billion in 2009.
Sales figures (in millions of units)
YearAndroid (Google)
iOS (Apple)
Windows (Microsoft)
2011 219.52 89.26 8.772012 451.62 130.13 16.942013 758.72 150.79 30.842014Q1 229 43.7 6.2
2014Q2 255 7.4
According to Coda Research Consultancy:
Total sales volume is 234 m units in 2010 and expected to be 619 m units in 2015Total volume are forecast to reach 1.8 billion units in 2018.A 12.7% CAGR for the 2013-2018.
• Smartphones hold 10 % market share among India’s mobile phone using population• Below $200 smartphones accounts for 4/5 of total Indian
smartphone sales.• In 2014, an astounding 450 million smartphones are likely
to be shipped in china alone .• Smartphone shipments will double between now and 2018 within key emerging market including India, Indonesia, and Russia.
• Local companies are sacrificing profit margins to build market share in India, which counts 914 million mobile users.• India is now the quickest–expanding smartphone market
globally and 3rd-largest market after china and the U.S.
Smartphone shipment by OS
Factors for Market Growth
The Popular Wi-Fi configuration and 3G telecommunications are considered the largest components behind the optimistic growth forecast for the smartphone market.
Advanced Operating systems with more computing like activities.
Enabling users to seek information instantly.
Market dynamics
• Industry is a duopoly.•High financial concentration in 1 company• Samsung dominates the Android ecosystem.• Established manufacturers are being squeezed.• Smartphone designs have reached a plateau.
Current market analysis
The newly formed competitive structure of the smartphone market can be divided into three market segments:
(1) Hardware manufacturing(2) Operating systems(3) Content
1. Smartphone manufacture hubs
Huawei• Produces optical network transmission equipment in a plant in Chennai of South India
and manufactures wireless network equipments while\refraining from elaborating the investment amount for the plant.
• Huawei also has started the building of self-developed research and development park in Bangalore.
Lava• U.P based mobile handset company.
• The company also has a manufacturing plant and intends to start end-to-end manufacturing of mobile phones soon.
• Lava is also planning to set up a full-fledged R&D center in Bangalore soon.
Karbonn• Mobile handset manufacturer based in Bangalore.
• Collaborated with leading semiconductor companies for their handsets.
• Exports its handsets to Africa, South Asia and Middle East countries.
Lemon• Working with ODM and OEM partners.
• Innovation center in north India to design and develop handsets as per trends in the Indian market.
LG • Established in 1997, (South Korean Company).
• Market leader in consumer durables and recognized as a leading technology innovator in IT and mobile communications business.
• Started in 2004, manufacturing unit in Haridwar in 2005.
• Presently Bringing handsets to India market from China under a
contractual manufacturing from a local vendor.
• Micromax manufacturing company located in Gurgaon.
• It has over 23 national and international offices.
• Micromax with a 19.1% share is the 2nd largest smartphone brand in terms of shipments, closely following Samsung (25.3%).
Motorola• US cellphone manufacturer Motorola has its handset manufacturing
facility at Sriperumbudur, Chennai.
• This includes GSM and CDMA mobile devices and networking equipment
such as base stations and system controllers.
Samsung• Global leader in semiconductor, telecommunication, digital media and
digital convergence technologies.
• Leading producer of digital TVs, semiconductor chips, mobile phones and TFT-LCDs.
• Has its mobile manufacturing unit in Noida (U.P) as sixth overseas manufacturing unit in the world.
Spice• Spice is one of the first Indian mobile device players.
• has multiple interests in the telecom, media and retail space.
• manufacture at its plant at Baddi, Himachal Pradesh.
ZEN MOBILE• Aim- To provide quality products and services to customers in
India,
• Started operations in 2009. It has tied up with a China based ODM, but it designs phones locally.
• Actor Amitabh Bachchan is its brand ambassador.
• Local manufacturing is also one of its priorities and Zen is working towards starting manufacturing locally.
2. Operating systems
Smartphone market has shifted from hardware to software:
Google, Apple, Blackberry, Microsoft have become the leaders in this market for developing and providing operating systems to cell phone manufacturers.
iOS Vs Android
• Android devices have exceeded iOS, continuously winning increasing market share.
• Android users purchases lower cost devices compared to Apple.
• Android might command the market, but Apple has a grip over that smaller part of the market share who is willing to spend.
• Android might have the quantity, But Apple has quality consumers.
3. Content
Content developers form another competitive axis because content is provided to application stores.
Forecasts and analysis: Asia pacific
• Developed Asia–Pacific: 96% of handset sales will be smartphones in2018
• Emerging Asia–Pacific: 47% of connections will be smartphones by2018, and the market will continue to grow steadily beyond the forecastperiod
smartphone non smartphone
Smartphone’s share
Indian Smartphone Market Analysis
• Indian market is owned by
Samsung and Micromax.
• Market share of them combined is
52% of the Indian market .
• Micromax can be the leader in Indian market.
How Micromax become Indian market leader
• It launched his phone in every range.
• Despite manufacturing of smartphone by itself they relied on several individual units worldwide like –
Borrow technology from SHENZHEN , CHINA.
• Sponsorship of cricket tournaments in asia pacific make it popular amongst them .
• It attracts over 130000 outlets in india across 560 districts.
• Always rely on Free android for their phones
• Use pricing strategy of amazon in which price of final product is equivalent to the individual components
- Large customer base
- Brand name - Technology
- Low manufacturing Base- Focus on too many products
- Rising 3G uptake- Growing rural numbers- Growing tablet market
- Competition- Rapid change in technology- Saturated market in Developed countries
2 Bs 2 Bs
Porter’s 5 forces Analysis
The threat of substitute products
The threat of existing Rivals
The threat of new entrants
The bargaining power of customers
The bargaining power of suppliers
3 Ts 3 Ts
Threat of Substitutes
• Low Buyer inclination to substitute• High switching costs• High price-performance ration (value)
Intensity of Existing Rivalry
• Fast Industry growth rate• Low Product differentiation: • High margins• Brand identity• High diversity of rivals• Large industry size • Exit barriers are low
Threat of New Competitors
• Strong distribution network required
• High capital requirements
• High sunk costs limit competition
• Strong brand names are important
• Advanced technologies are required
• Industry requires economies of scale
• Entry barriers are high
• High switching costs for customers
• Patents limit new competition
Bargaining Power of Suppliers
• Large number of substitute inputs
• High competition among suppliers
• Critical production inputs are similar
• Volume is critical to suppliers
Bargaining Power of Customers
• Increasing Buyer volume• Increased price sensitivity• Low threat of backward integration• Low Product differentiation• Low dependency on distributors
China Vs India
Majors in the market and their products
The Indian mobile economy is growing rapidly and will contribute approximately $400 Billion to India’s GDP.
contribution
Global GDP Contribution
Supply chain
Present Market share
CONCLUSION : Smartphone Industry
o Tremendous technology has transformed the world.
o Exploded into market and became a part of popular culture.
o Revolutionized the communication between people.
o Instant access to information.
o Very popular due to its versatility. (Advanced Photo sharing, Games, Internet services etc.)
o Parallel growth required so the product remains relevant.
o Constantly changing society will undoubtedly evolve smartphones.
o Move with demands, otherwise entire industry will suffer.
o Endless opportunities.
o Applications give Smartphones an extra edge.
o Future is promising to the growth rate of industry.
Issues with Smartphone
• Battery Life• Environmental• Worker conditions• Social• Legal/Patent war• Security• Disturbing sleep
ORIGIN OF OTHER INDUSTRIES
• Accessories – Screen Guards, Phone Covers, Earphone, Memory Cards etc.
• Speakers, Data Cables, Power Banks etc.
• Telecom Services (3G and 4G)
• Application Industry
Employment status
Smartphone industry opens up so many Jobs Domains and Helps in the growth of Different Industries and thus Creates a huge margin of Jobs worldwide.
o In 2015, developed markets will almost complete their transition to smartphones.
o Android remains the dominant operating system over the forecast period.
o Smartphone market has become most competitive and complex.
o Smartphone industry is dynamic.
o low margins for the majority.
Adverse effects of smartphones
THANK YOU
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