The Mobile Phoneand Its InnovationsIncluding a Discussion on ThePresent Dominant DesignStudents:Miguel Bello / Emanuela Delfino / Rebecca Hallqvist / Sofia Reibring / Silvia Remotti / Dipa SitepuCourse: Strategic DesignProfessor: Tommaso BuganzaDate: Fall semester 2009Politecnico di Milano
1. history of the Mobile Phone1.1 Main InnovationsIn 1984 Motorola’s mobile phone DynaTAC was launched to the public. This was the first device classified as a mobile cellular phone; an electronic device used for telecommunications over a cellular network of specialized base stations which form cells. More importantly its dimensions were small enough to be completely handheld or fit inside a briefcase. Therefore, DynaTAC was a radical innovation; it was a new type of product wich had needed new component knowledge and new architecture knowledge. GSM, Global System for Mobile Communications, was a new communication standard in 1991 and brought the mobile phones into the Second Generation, 2G. The introduction of GSM made the industry boom; the mobile phone became a recognized product and the era of every man’s mobile phone began. In 1991 a new communication channel called SMS, Short Message Service, entered the world of mobile phones. At first SMS was not of common use, but today it is one of the most important services of the mobile phone. The introduction of SMS also brought other services to the mobile phone; for example paying tools and bank services that are run through SMS. Also WAP can be described as a new communication channel. Through WAP 1.0 (launched in 1998) users reached Internet through their mobile phones, without the need of a cable. Web pages had to be written in WML (instead of HTML) and viewed in a WAP browser. This innovation led to the first e‐mails through mobile phones in 1999. Having both Internet and e‐mail available on mobile phones made it possible to reach the “computer world” everywhere. The Third Generation, 3G, was launched in 1999 and enabled faster speed and the possibility to deal with different communication channels at the same time, for example the transmission of image and sound simultaneously in the case of video calls. Faster speed gave birth to many other innovations. GPRS was one of the standards included in the definition of 3G and enabled package‐switching, which uses existing networks in a different way, in order to get higher speeds. One of the most important extra features is probably the mp3‐player. Although launched in 2000, it took a while to implement this function with the users. However, the fact that Nokia is the biggest seller of mp3 devices today shows that this innovation has had a large impact on the mobile phone market. In many cases the mobile phone has been substituted for the traditional mp3 device. Around 2000 more advanced operating systems for mobile phones became more common. These operating systems let you install programs on your own and let you have more control of your phone. Two examples are the Android and Symbian OS. In 2009 Android opened up its source code to allow users to create their own software. This type of user‐generated programming often enhances the speed of innovation.
Apple’s iPhone can be mentioned as an innovation from the point of view that it has reached a broader target group that previous Smartphones. In 2007 the original iPhone built for GSM and EDGE was released in USA, Great Britain, France, Germany and Switzerland. The second version built for 3G was released in 2008 3G in 22 countries. The innovation process in the cell phone industry have experimented both competence enhancing and competence destroying. In the first case for example, we can see how some innovations were built on the firm’s or industry’s existing knowledge base. Some examples of this can be found in the addition of touchscreens or mp3‐players to a cell phone, or in the constant upgrades with small changes from model to model. On the other hand, competence destroying processes can be found in the big jump between the analog first generation to the digital second generation. 1.2 Main PlayersIn 1983, Motorola released DynaTAC and became the pioneer of handheld cellular mobile telephones, with Ericsson running behind. At that time the retail price of Motorola DynaTAC was US$3,995 or around US$8,544 today, which made mobile phone considered a high‐end product and impossible to become a massmarket item 1 . Motorola surprised the world of 1989 by launching the MicroTAC in 1989. It made headlines worldwide because of its shape, which folded up to fit into a shirt‐pocket. At the time, it was the smallest and lightest phone available. However amazingly small, it was still sold at a price of around US$3,000 and unaffordable to most people. 1 http://en.wikipedia.org/wiki/Motorola_DynaTAC http://en.wikipedia.org/wiki/Motorola_MicroTAC
In the early 90s, Ericsson took the lead from Motorola and also Nokia became stronger. Due to a warehouse fire at an important component manufacturer, Ericsson was however put out of play for some time, which created the opportunity for Nokia to take over the leading position.2 In the third quarter of 2009, Nokia remains on top of the the mobile phone vendors, holding a market share of almost 40% of the sales of cell phones worldwide. Nokia sold 468.3 million units in the full round of 2008. Nokia is reported facing some pressure in its devices and services, where their market share estimated to go down to 35%. They have however managed to provide a wide range of products during a long time, which has kept them the market leader. Samsung is the runner‐up a 16.76% market share and will reach their goal of 200 million sold units in 2009. Samsung now produces devices able to run Android and Linux. Important features today include the touch screen, the QWERTY keypad and mid‐range of camera phones have been the three product segments that Samsung will focus to compete the cost competitiveness. With 101.1 million units sold and 8.62% of market share worldwide, LG is found in third place with just a slight upper hand on Motorola. LG has had success in the developed market and competes aggressively with cost effectiveness in the lower end of the markets. Almost half of the units sold are priced US$100 or less. While for the market of smartphones, RIM, the developer of BlackBerry, holds the second place with over 8.5 million units sold in third quarter of 2009 and a market share. Apart from the cellular devices, RIM focuses on pre‐paid sales and more flexible BlackBerry Internet Service offers. Not far behind, Apple holds the third place with over 7 million units sold until the third quarter of 2009. Apple continues to sell the iPhone 3GS in China and 16 additional countries. Except from a strong design and innovative architecture and use of components, another strength is the creation of a platform for the users to develop their own software and share it with other users. The strong focus on surrounding services is quite unique 3 . 2. Dominant Design2.1 IntroductionOne part of the process of finding a dominant design is closely linked to the study of standardization, which examines the process by which products in a market 2 http://www.mobilen50ar.se/eng/FaktabladENGFinal.pdf 3 http://www.cellular‐news.com/story/40605.php http://dhdeans.blogspot.com/2009/11/top‐5‐mobile‐smartphone‐vendors‐for.html http://www.ericssonhistory.com/templates/Ericsson/Article.aspx?id=2057&ArticleID=1889&CatID=354&epslanguage=EN http://www.nokia.com/about‐nokia/company/story‐of‐nokia/the‐move‐to‐mobile/mobira‐cityman
converge on a design or standard, that ensures that all products are interoperable and compatible. The design may then be determined either by public bodies (e.g. by ministries or regulators) or collaboratively within standardization consortia, usually comprising experts from standardization organizations and industry participants. In addition, different market segments have different dominant designs, for example, mass consumer devices are different to high profile and business ones, not only in their appearance but also in their usability and services. On the other hand, the process of finding a dominant design is linked with history and previous innovations introduced by preceding products. Having this in mind we present the icons thorough the history of this industry: 2.2 Icons on the Dominant DesignAccording with our timeline, the article published in Forbes Magazine titled “The Worlds Most Iconic Cell Phones” 4 , and the Technological Post titled “The 10 Most Iconic Cell Phones Of Our Time” 5 , we selected 10 main innovative designs as key frames that have been the breakthrough in the history of cell phones, in order to compare the most relevant designs, to understand the main features that have been added and how they have evolve. In the words of Dan Frommer: “To qualify as iconic, most of our phones featured breakthrough designs, challenging prior devices with size, shape and style. But utility and mass adoption are just as important; if people dont buy them, its hard to say theyre relevant.” 6 1. The Bag Phone: This early‐adopter gadget from Motorola, circa the 1980s, both came in a handy carrying case and were too bulky for everyday use. Weighing several pounds, these eventually gave way to the portable phones. 2. The Brick Phone: Motorolas DynaTAC 8000X was the first truly portable cell phone on the market. When it was released in 1983, the two‐pound "brick" was priced to sell around $3,995. 3. The Flip Phone: In 1989 MicroTAC cell phone could fit in a jacket pocket. Weighing in at less than a pound, the MicroTAC cost as low as $2,495 and led to todays flip‐phone form factor. 4 Frommer, Dan. “The Worlds Most Iconic Cell Phones”. 2006. Forbes.com. 3 Dec. 2009 [http://www.forbes.com/2006/06/26/mobile‐razr‐brick_cx_df_0626cellicon.html] 5 Miah, Kashem. “The 10 Most Iconic Cell Phones Of Our Time”. 3 Aug. 2009. http://blog.ziggytek.com/. 08 Dec. 2009 [http://blog.ziggytek.com/2009/08/03/10‐most‐iconic‐cell‐phones‐of‐our‐time/ 6 Ibíd. (2)
4. The StarTAC: Motorolas StarTAC was the lightest and smallest phone in the world when released in 1996. This model weighed less than a Quarter Pounder and was priced to sell around $500. 5. The Nokia Candybar: This late‐1990s model was many Americans first cell phone, featuring a brilliant LCD screen, trendy customizable faceplate, and additional features like video games. For a few hundred dollars, the Nokia 5160 was lightweight, portable, inexpensive and massively available. 6. Danger Hiptop: The Danger Hiptop was a one of the first mobile phones to offer a variety of functions like email, web browsing, SMS, instant messaging, and calling. It was also the first phone to ever sport the swivel design, that’s prominent in today’s Sidekick phones. 7. The SmartPhone: While Palm focused on its personal digital assistants, the Treo 700 breakthroughs as an innovative cell phone running PalmOS operating system. With a large color screen, Treo owners could keep their schedule up‐to‐date, browse some Web sites and synchronize everything with their computer. Almost every device manufacturer now markets a smartphone, including Nokia, Sony Ericsson, Motorola, HP, among others. 8. Blackberry Phone: Canada‐based Research In Motion (RIM) introduced their 5810 model in 2002 and started to slowly take the business world. A device specialized in mobile e‐mail and also makes phone calls. From the U.S. government to corporate boardrooms, more than 5 million people loved its features as its huge screen and Qwerty keyboard. 9. The V3 RAZR: Motorolas V3 RAZR revolutionized the fashion gadget, released in 2004 and in the four years it was out, the Razr sold over 110 million units and become the best‐selling cell phone in the world. With an initial launch price of $500 the half‐inch‐ thick RAZR put style and sexiness over functionality and made it work. RAZR transformed Motorolas image from stodgy radio manufacturer to lifestyle‐device specialist. 10. Apple iPhone: Apple first released the iPhone in 2007 and it created a new standar compared with other smartphone in history. With an innovative design, software and feel it became a revolutionary phone without the traditional keyboard (virtual), a touch screen with multi‐touch capability and new software. The introduction App store is one of the key ingredients for the success of the iPhone, with more that 65.000 apps to download directly to your device.
2.3 CategoriesHaving in mind this list of Icons we can find in two main configurations: 1) Conventional Cell Phones 2) Smartphones. However it is necessary to clarify that there is no agreement in the industry to define what precisely constitutes these devices and definitions have changed over time: Conventional Cell Phones Most models are compact and priced from $20 to $150. The keypad and overall operation is generally straightforward. They typically support voice calls, Short Message Service (SMS), Multimedia Message Service (MMS), and newer phones may also provide Internet services such as Web browsing and basic e‐mail features. A new crop of feature‐based models can access high‐speed data networks (3G) to enjoy music and video‐based services. Other common features include a contact organizer, alarm clock, a full browser, a multi‐megapixel camera, memory‐card storage for music and pictures, and more option for custom ring tones, games, and other services. 7 Smartphones A Smartphone combines the functionality of a conventional cellular phone and a handheld computer in a single device with an identifiable operating system. It typically supports full e‐mail browsing, calendar and organizer. Other functionality might include an additional interface such as a miniature QWERTY keyboard or a touch screen, the ability to read documents, media software, contact management. In contrast to conventional cell phones, smartphones allow users to choose the applications that they want to install and use. This means that users can personalize the range of applications in their devices to suit their lifestyle and their work. 8 2.4 Top Selling Mobile PhonesAnother important reference to determine the dominant design are the relations between the icons presented and the actual activity on the market. Mobiledia.com lists the top selling cell phones in the Fourth Quarter of 2009 9 in United States, which we use to identify what is going on in the industry that has had relevance in the sales of cell phones: 7 “Types of Cell Phones”. Consumerreports.org. 2008. 08 Dec. 2009 [http://www.consumerreports.org/cro/electronics‐computers/phones‐mobile‐devices/cell‐phones‐services/cell‐phone‐service‐buying‐advice/types‐of‐cell‐phone‐services/cell‐phones‐types.htm] 8 Ibíd.  9 “Best Sellers Cell Phones ‐ Q4 2009”. Mobiledia.com. 2009. 08 Dec 2009 [http://www.mobiledia.com/shop/best‐sellers.html]
Model: HTC Droid Eris HTC Pure LG Shine 2 Motorola Cliq RIM BlackBerry Phone (MB200) Bold 9700 Network: CDMA 800 / GSM 850 / 900 / GSM 850 / 900 / GSM 850 / 900 / 1800 GSM 850 / 900 / 1900 1800 / 1900 / 1800 / 1900 / / 1900 / WCDMA 900 / 1800 / 1900 / UMTS 850 / 2100 UMTS 850 / 1900 1700 / 2100 UMTS 1900 / 2100 Form Factor: PDA / Google Block / Windows Slide Slide / Google Android PDA / BlackBerry Android OS v1.5 Mobile 6.5 OS v1.5 OS 5.0 Professional Dimensions: 113 x 56 x 13 108 x 53 x 14 107 x 51 x 13 mm 114 x 58 x 16 mm 109 x 60 x 14 mm mm mm Weight: 120 g 118 g 125 g 163 g 122 g Antenna: Internal Internal Internal Internal / Dual Antenna Internal Navigation: Touch Screen / Touch Screen 5-Way Keypad Touch Screen / QWERTY Keypad / Trackball (TouchFLO 3D) QWERTY Keypad / 5- Trackpad Way Keypad Battery Type: 1300 mAh Li-Ion 1100 mAh Li-Ion 900 mAh Li-Ion 1420 mAh Li-Ion 1500 mAh Li-Ion Talk Time: 5.00 5.67 3.33 6.00 6.00Standby Time: 420 360 300 325 456 Memory: 288.0 MB 288.0 MB 100.0 MB 256.0 MB 256.0 MB Expandable microSD / microSD / microSD / microSD / TransFlash microSD / Memory: TransFlash TransFlash TransFlash TransFlash 2.5 Comparison By comparing these models, we get clues about the current dominant design, which also has a strong connection to released models in previous years. We can identify archetypes for visible element such as the screen, keypads and overall size and layout. The keypads, even when there’s a virtual interface on a touchscreen, respond to a worldwide standard, according with the document “Series E: Overall Network Operation, Telephone Service, Service Operation and Human Factors” 10 published by International Telecommunication Union (ITU). 10 “Series e: overall network operation, telephone service, service operation and human factors”. International Telecommunication Union. 02/2001. Available online: [http://www.itu.int/en/pages/default.aspx]
ICONS TOP SELLING Q4 – 2009 2.6 Defining the Current Dominant DesignOnce we have understood the keyframes in the history of innovations and its impact both in actual designs and in people’s mind we can conclude that: 1) The hardware and the software in these devices have been regulated and standardized since the birth of the mobile phone. We find that some characteristics have subsequently become industry standards, while some remained as horizontally differentiating features of mobile handsets. For these reason, some features have evolved in terms of technological approach but their main functionality is the same. 2) The dominant design strongly depends on the context and the place discussed. The dominant design in the United States is not necessary the same as in Africa or Japan because of background, cultural approach, socioeconomic context and so on. 3) We consider new touchscreen technologies to be in a fluid phase, mainly because we have seen different architectures, different performances, and radical innovations based on products. There are not yet defined standards for everything, which shows that there is not a dominant design; companies are still experimenting. These technologies need to improve their capabilities and accuracy, and also become economically available to the vast majority of the market, in order to replace today’s dominant design.
In the following chart we present the main features, that according to our research, are the elements of the dominant design for a cell phone. Our method to determine the features was based in a comparison between the features from 20 different devices from different companies: MAIN FEATURES 11 REFERENCE - General Dimensions: Between 96 x 45 x 10 mm AND 112 x 51 x 15 mm, depending on the design, opening system (block, clam shell, slide, etc), among others. - Keypad: It was standardized when the dual-tone multi-frequency (DTMF) system was introduced in the 1960s, and replaced the rotary dial. The contemporary keypad is laid out in a 3×4 grid. 12 - Navigation: 5-way Keypad - Main Screen: 11 Info provided by Mobilmedia.com. 2009. [http://www.mobiledia.com/] 12 “Telephone keypad”. http://www.wikipedia.org. 2009. 13 Dec 2009. [ http://en.wikipedia.org/wiki/Telephone_keypad ]
Between 176 x 220 px AND 240 X 320 px- Weight:Between 82 g AND 125 g- Antenna:Interna- Battery Type:Between 800 mAh Li-Ion AND 1500 mAh Li-Ion- Talk Time:Between 3.3 hours AND 8.5 hours- Expandable Memory:microSD / TransFlash- Connectivity:Bluetooth 2.0, USB 2.0- Applications:Phonebook (Limited to 1000 contacts), calendar, alarm clock, To-do list, WAP, calculator.- Messaging:SMS, EMS, MMS, Email- Multimedia:Wallpapers, screen savers, ring tones (mp3), themes, games.- Audio:Mp3-player- Others:Vibration alerts, speed dialing
Today’s Marketshare (3Q09) Nokia Nokia 37,8 % Motorola Ericsson Samsung 21,0 % LG 11,0 % 1.9 kbps 14.4 kbps 184 kbps 2000 kbps Sony Ericsson 4,9 % Motorola 4,7 % 1G 2G 2.5G 3G 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2002 2005 1998 MMS (Multimedia Messag- The new standard 1979 HSDPA allowed WAP 1.0 ing Service) became a new The rst system of 1G 2001 e cient use of 1991 standard. Sony Ericsson was launched in Japan Video calls available lines, GSM - the rst 2G standard - was T68i was one of the rst by the telecommunica- which enabled launched in Finland by Radiolinja cellphones to use MMS. tion company NTT. higher speed. and Motorola. 1999 The third generation 3G was builtNETWORK upon these standards: EDGE, 2002 UMTS, CDMA2000 and DECT. WAP 2.0 2007 1983 The standard WiMAX TACS (Total Access Communication 1992 was added to 3G and Standard) was introduced in some SMS gave fullly mobile European countries and in Japan. It is an 2001 1999 internet access. analog cellular standard (but has now A Japanese company GPRS (General Packet Radio Service) fully been replaced by GMS in Europe). J-phone launched was launched in the UK. This standard Sha-Mail which evolved enables packet-switching. into MMS. 1999 2005 MicrosoftSOFTWARE E-mail on cellphone 1997 launched MSN Nokia was the rst to 2002 for cellphones. add games on Truetone ringtones cellphone. (mp3/AAC). In 2004 ringtones repre- 2008 sented a $4 billion global In-phone video editing 1999 market, almost all of it Motorola Z10 1999 outside the USA. Blackberry introduced the rst Polyphonic/MIDI signals smartphone, which is a cellphone combined with PDA. 1973 Motorola makes 2007 the rst working 1984 Worlds rst completely touchscreenCOMPONENTS prototype of a The worlds rst commercial based phone: KE850/Prada phone, by hand-held cellular portable cellular phone: LG Electronics/Prada. phone, DynaTAC, was launched by 2001 the DynaTAC. Motorola. 2000 Cameraphone Touch screen 2008 1992 Gesture Control Nokias rst Sony Ericsson Z555 handset. 2000 2008 Mp3-player in cellphone Shake Control (The Uproar, Samsung) Sony Ericsson W760