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This Frost & Sullivan research service titled Smartphone Market
Outlook: India provides the future strategic roadmaps of the key
participants, market drivers and restraints, as well as international
trends of operating systems. In this research, Frost & Sullivan’s
expert analysts thoroughly examine the following application development
communities: handset manufacturers {original equipment manufacturers
(OEMs)}, telecom service providers, and content developers/operating
system providers.
Market Overview
Smartphones Emerging as the Future Growth Engines of the
Mobile Industry
As consumers increasingly seek a single converged device to support
multiple functionalities on the go, the spotlight will invariably fall
on smartphones. These devices cater to both individual and enterprise
users due to their consumer- and productivity-centric approaches. The
application development community and mobile operating systems
participants are the key enablers of smartphone ecosystem, wherein users
prefer a single point of access and management of content. In this
scenario, product innovation and the application portfolio will be the
primary market growth drivers. “With Web 2.0 (social networking,
microblogging) technologies gaining traction and the youth demographic
keen on adopting smartphones, applications are expected to emerge as the
key differentiating factor,” says the analyst of this research. “Touch
screen technologies and customized interfaces in terms of innovative
product features will also propel the market ahead.”
With the urban markets having matured in terms of feature phone
usage, numerous mobile users in this demographic are looking to upgrade
to a smartphone. This replacement market will be predominantly populated
by the younger demographic, which are early adopters of technology and
avid users of Web 2.0 technologies. “The smartphone ecosystem is looking
to build a distinct identity in the application community with handset
manufacturers, service providers, and operating system developers having
content portals that enable consumers to access a wide variety of
applications,” notes the analyst. “However, over 70 percent of the
population consumes only voice services, and data services have not yet
gained traction, which can slow down the adoption rates of
smartphones.”
To compound participants’ issues, the existing data bandwidth is
insufficient to support data-intensive applications. They are hoping to
remedy this issue and support smartphone-based applications by deploying
high-speed 3G networks.
In a highly competitive market where handset manufacturers and
service providers vie for subscribers, a comprehensive value proposition
is likely to be the factor that will tip the scales. Both these
stakeholders will aim to lure consumers with an end-to-end service
offering, significant investment in product R&D, and attractive
revenue sharing agreements with content developers. Meanwhile, with the
emergence of open source operating systems, there is a paradigm shift
toward a collaborative ecosystem, wherein participants leverage each
other’s expertise. This has fostered an environment of strategic
alliances that will help offer a one-stop shop for handsets, data plans,
and the point of access for an application ecosystem. “All participants
of the ecosystem will have to collaborate to develop an end-to-end
value proposition that will engage consumers and thereby, increase
customer loyalty and satisfaction,” observes the analyst.
Application Sectors
Expert Frost & Sullivan analysts thoroughly examined the following market sectors in this research:
By Application Development Communities:
- Handset manufacturers (original equipment manufacturers (OEMs))
- Telecom service providers
- Content developers/operating system providers