Monday, 14 September 2015

Competition helps, hurts telecoms industry – Akinluyi

TELECOM market outlook: Let me begin this way: A colleague of mine recently bought a smartphone. On a limited budget, he was able to find an excellent phone with a sharp 5.5inch display, 32 GB storage, and an 8 MP camera, running the latest version of Android for a little over $100. I spent a few minutes looking at the device and marvelling at the fantastic value for money, and it hit me – consumers have never had it better, but telecoms companies have never been under more pressure.
Mobiledevice
Tolu-Akinluyi
Tolu-Akinluyi
Samsung – the world’s largest mobile device manufacturer recently recorded a 37.6% drop in profits, due to competitive pressures. Even with a global brand and large advertising revenues, it has become extremely difficult for Samsung to compete with over 100 different mobile device manufacturers all struggling for market share and profitability and this is only part of the story.
How Android spurns competition:  There are four main smartphone software platforms – Apple iOS, Android, Windows and Blackberry. According to Gartner, of these platforms, Android owns over 83% market share, while iOS owns about 13% market share.   The Android platform is owned by Google, and is provided free of charge to handset manufacturers to use on their devices.
This has made it relatively easy for manufacturers to enter the market, as Google manages the platform and has created an attractive and profitable ecosystem for application developers to deliver their content to subscribers.

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