The smartphones are on its way to be just “phones” and to be commoditized. Though Google’s Android offers attractive alternatives for firms such as HTC, LG, MOT and Samsung, and they can concentrate on their manufacturing prowess and can compete with excellent designs, question raises for how long this could be sustainable. Now is a good time for OEMs (Original Equipment Manufacturers) and operators to start thinking about next stage of innovation in mobile devices industry. One way the industry could move is from product innovation to service innovation. We can see operators, OEMs and content providers joining hands on providing add-on services to the subscribers.
Market going forward is going to increase in demand for more and more data and the industry can address the upcoming limited data plans is by sponsoring data usage and offering free content on mobile devices. The source of revenue for the operators, OEMs and content providers can move from data usage, subscription towards advertising, lead generation etc. We can see in-app advertising model to gain traction going forward. As Android becomes the dominant operating system, Google has highest possibility of gaining even greater power to monetize mobile Internet traffic since it is already a leader in advertisement based revenue generation.
The mobile handsets are already indispensable to daily life and will continued to be used for a wide array of functions, including consumer purchases, banking, real-time video connectivity, advanced GPS tracking, entertainment and much more. Smartphone makers and app creators will continue to leverage the full range of sensors on modern handsets to further deliver revolutionary products and transform mundane mature features.
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