1. AB113 Information Technology Case Study 3 “As Smartphones Proliferate, who will win?” Presenters: Lee Wan Lin Darren Yuen Wei Wen Alan Mok Zhen Tao Alex Png Soon Lee Goh Jo-Lin Post us a question on TWITTER via your smartphones Username: IT_FTW Password: marclow

2. Agenda Introduction Smartphone and other types of phone Key distinguishing features Customer segment How critical apps are to smartphone platforms Definition of Apps Smartphone platform How critical? Lock-in Definition Advantages for Providers Advantages and Costs for Customers Prevalence of lock in in the mobile phone market

3. Agenda Co-existence of PC and smartphone Smartphone better than PC PC better than smartphone Blurring boundaries Smartphone or platform dominate going forward Smartphone: Nokia as the dominating hardware Platform: Google android v Apple IOS Fragmentation of the smartphone industry

5. 1st Blackberry created by Research In Motion(RIM)

6. Android was introduced by Google

7. 1st device to use Symbian OS – R380 by Ericsson

9. Microsoft Windows Powered Smartphone 2002

11. How do smartphones differ from other types of phones?

12. Key distinguishing characteristics More advanced functions GPS, email capabilities, internet browsing Memory, Processor Have more memory and faster processor Ability to multitask

13. Key distinguishing characteristics Operating System Connectivity WIFI, 3G, Bluetooth

14. Key distinguishing characteristics Screen and resolution Generally bigger and better Applications Enriches the content

15. Is their customer segment different from those of other types of phones? Conventional phone users

16. Is their customer segment different from those of other types of phones?

17. Is their customer segment different from those of other types of phones? Socially active Catch up with people in multiple ways Commercially active Businessmen who need to store lots of information and connectivity is needed

18. Is their customer segment different from those of other types of phones? IT savvy keep up with newest tech Entertainment enthusiasts Entertainment on-the-go Fashion statement

19. Conclusion Segments between smartphone and regular phone users are converging Obsolescence

20. Dummies Question What are some functions of smartphones that differ from traditional phones? Calling device Messaging device Storage device GPS-enabled Apps

21. QUESTION How critical are applications for the success for a specific smartphone platform? Discuss.

22. What are applications? Computer program designed to help the user perform a particular task Customize phone according to personal needs

23. Categories of Applications

24. Where to get Applications? Google Android Nokia Ovi Apple iTunes Palm App Windows Mobile Blackberry App

25. Demo of applications and apps store

26. What are smartphone platforms? Windows Mobile iPhone OS Google’s Android Symbian OS RIM’s BlackBerry Palm’s WebOS Linux

27. How critical are applications for the success for a specific smartphone platform?

28. How critical are applications for the success for a specific smartphone platform?

30. How critical are applications for the success for a specific smartphone platform?

31. How critical are applications for the success for a specific smartphone platform? Hardware Applications increasingly become similar Interoperability and lock-in

32. Dummies Question What is killer application? It kills the battery life. It kills the user. Computer programme that is so necessary that it proves a core value of a larger technology. It kills other applications

33. What is Lock-in and why is it so prevalent in the mobile phone market? What advantages does it have for providers? And is it also good for customers? QUESTION

34. What is Lock-in? The practice of requiring the users to use hardware and software from a prescribed set of vendors by imposing substantial cost or inconvenience and replacing the product

35. Types of Lock-In

36. Examples of Lock-In

37. What advantages does it have for providers? Profits Getting customers to subscribe for more services Retaining and increasing market share Cost of Switching is high Customer loyalty Brand Equity

38. Is it also good for customers? YES & NO

39. Advantages to customers Innovation Wide Range of Applications Smartphones are constantly reviewed, upgraded and introduced to the market Upgrades Free software upgrades for customers

40. Disadvantages to customers Substantial Inconvenience and Expenses High cost of switching Lack of Bargaining Power Forced to pay for services Vulnerability to Forced Upgrades Obsolescence

41. Prevalence of Lock-in in the Market Overall good business strategies Provides benefits for both providers and customers

42. Dummies Question What is lock-in? Being addicted (locked-in) into the phone itself Escalating of commitment. Lock in to the prescribed set of hardware and software The apple way of saying login (lock-in)

43. Will smartphones kill the PC or can the two co-exist? QUESTION

44. What the experts say… Dell CEO Michael Dell believes that each user will have many devices, each geared for a specific task. "Some are better for carrying with you. Others are for consuming content, others are better for creating content.” "Mobile phone access will be the next significant Internet phenomenon." --Symbian "In three years’ time, desktops will be irrelevant. In Japan, most research is done today on smartphones, not PCs.“ --Google's John Herlihy

45. Smartphone Or Personal Computer?

46. Launch of the Smartphone Index Source : Engadget, April 2010.

47. Smartphones – Threat to PC IDC says 100.9M smartphones sold in fourth quarter, PCs outsold for first time By Chris Ziegler Feb 8th 2011 12:36PM In case you had any lingering doubt that the smartphone is the new personal computer, just take a glance at IDC's new global smartphone sales numbers for the fourth quarter of 2010 where we learn that some 100.9 million units were pushed in the three-month period -- up a whopping 87.9 percent year over year. That figure compares to 92.1 million PCs sold during the same quarter, which, though a record for the PC industry, was left in the dust of the smartphone's stratospheric rise.

48. Smartphones – Threat to PC Source : Katy Huberty, Ehud Gelbium, Morgan Stanley Research. As of 2010/11

49. Smartphones – Threat to PC Superior portability Affordability Ubiquity Connectivity

50. Smartphones - Threat? Not so… Restrictions in data usage Inadequate speed limits Hardware limitations (powerful processors, storage capacityetc) Weaker battery life

51. Smartphones - Threat? Not so… Powerful, efficient data processing Options to expand CPU, RAM Generous storage capacity Options to expand storage Superior battery life Interoperability

52. Coexistence of Smartphones and PCs Used as an additional web-browsing and social connectivity tool Relatively dependent on computers for maximum utility of full-suite applications, backup of data

53. Coexistence of Smartphones and PC Major players in the PC industry beginning to leverage the lucrative market of the smartphones Microsoft Windows Phone (LG Optimus 7) Dell Streak Google Nexus One Acer Crystal Asustek

54. Coexistence Convergence Eighth Circuit declares RAZR a computer under federal law By Michael Gorman Feb 12th 2011 There's little doubt that today's smartphones are pocketable computers -- they're equally or more powerful than the desktop PCs of yesteryear -- but what about dumbphones? Well, in US v. Kramer, the Eighth Circuit Court of Appeals just held that a Motorola Motorazr V3 fits the federal statutory definition for a computer -- and quoted Woz in the opinion: "Everything has a computer in it nowadays." Seems a bit silly to call a RAZR a computer, but courts can only interpret existing laws, not make new ones -- and US law says a computer is "an electronic, magnetic, optical, electrochemical, or other high speed data processing device performing logical, arithmetic, or storage functions."

55. Coexistence Convergence

56. Dummies Question Can Smartphones and PC co-exist? Yes, they have different functions and are largely dependent on users’ preferences. Yes, cause they have different names. No, they are competing for the same customers’ markets. No, because PC are not smart enough.

57. QUESTION Hardware eg: Nokia, Iphone,Samsung Galaxy Which particular smartphone or platform do you think will dominate going forward and why? Or will the situation remain fragmented as it is today? Software eg: Google Android, Apple IOS, Blackberry RIM

58. Which particularsmartphonedo you think will dominate going forward and why? Top Five Phone Vendors, Shipments, and Market Share, Q3 2010 1. Nokia, 110.4 million units, 32.4% of market share 2. Samsung, 71.4 million units, 21.0% 3. LG Electronics, 28.4 million units, 8.3% 4. Apple, 14.1 million units, 4.1% 5. RIM, 12.4 million units, 3.6% Others, 103.8 million units, 30.5% Total, 340.5 million units

59. Which particular platform do you think will dominate going forward and why?

60. Nokia symbian used to be the market leader Nokia and Microsoft have teamed up to take Google and Apple Shares plunged down due to uncertainty arising from collaboration Which particular platformdo you think will dominate going forward and why?

61. Nokia workers mourn death of Symbian, thousands walk out By Tim Stevens We know how you feel about the apparent death of Symbian, and you had to figure that those most affected by it wouldn't be feeling too good either. Those people are, of course, the 1,500-odd workers at Nokia's Tampere office who have crafted the OS through the years, over a thousand of whom apparently walked away from their jobs today as a sort of non-violent protest -- or maybe just to get a preview of what their Friday afternoons will look like once Elop starts dropping the axe. It should be noted that they used their flexible work schedules to enable this, so this is one orderly bit of social dissonance that shouldn't result in any accelerations of whatever layoffs are to come.

62. Which particular platform do you think will dominate going forward and why? Google Android vs. Apple iOS– The rise of the superpowers in the mobile world

63. Which particular smartphone or platform do you think will dominate going forward and why? Google Android’s Strengths Open-source platform Few restrictions on third-party developers Many different handset options Android market Free Apps

64. Which particular smartphone or platform do you think will dominate going forward and why? Google Android’s Weaknesses Open source platform Hard to manage Wildly inconsistent experiences Confusing Button displays Timing of softwares updates

65. Apple’s iOS success Which particular smartphone or platform do you think will dominate going forward and why? Apple IOS’ Strengths Proprietary system Security system Apple Appstore More than 100,00 iphone apps

66. Apple’s iOS success Which particular smartphone or platform do you think will dominate going forward and why? Apple IOS’ Weaknesses Software inflexibility Hardware choices

67. Will the situation remain fragmented as it is today? REASONS FOR FRAGMENTATION Many different preferences and diverse demand Monopoly unfavourable due to decrease in choice and society welfare

68. Conclusion Google Android and Apple will likely to be one of the few leading platform Short-term: market to remain fragmented with no dominant player Long-term

69. Dummies Question What particular smartphone platforms will dominate going forward? iOS4 Symbian Android Will remain fragmented, as there are many considerations and challenges ahead.

70. QUESTIONS?