The worlds largest cell phone maker Nokia. On Thursday, last week, posted staggering 73% drop in second-quarter net profit to 287 million euros, or 0.10 euro a share, from 1.08 billion euros, or 0.29 euro a share, earned in the year-earlier quarter. Adjusted earnings came in at 0.15 euro a share. Sales declined 25% to 9.9 billion euros.
Apple's leading the way though with the smallest but fastest growing market share. Apple is also now the most profitable phone maker in the world.
higher end phones are only 13% of total cellphone sales globally, but growing, although the general cellphone market is steeply declining. Apple and RIM had about 32% of the smart-phone market between them by IDC estimates. RIM though still strong is struggling to maintain it's lead.
The US obsessed with celebrity culture has helped fuel the growth in Smart Phones. Even Britney Spears that claimed she wouldn't buy an iPhone because she didn't want to look like everyone else has given in to the new iPhone 3GS. Similar to the days when she endorsed Pepsi but the was seen drinking Coca-Cola. Even David Blaine, Lindsay Lohan, Katherine Heigl and Goldberg are toting Apple's latest tempting fruit.
What makes the iPhone special is it's simplicity. The Nokia and Samsung phones are as complex as high school periodic tables. A visit to their web site and you'll see:
- N97, N96, N96(music edition), N95, N86, N85, N82, N810 etc.... literaly to the Nth degree
- SCH-a570, SCH-a645, SCH-850, SCH-870, JACK, Omina, Instinct, Exclaim, Propel, Eternity SGH-A867, SGH-777...etc...
When someone mentions an iPhone people know what phone their talking about. When people mention Nokia or Samsung, you have to study a chart to know what your talking about. It appears like those companies have NO identity.
The iPhone when released in 2007 was revolutionary but not yet at full gear. The price was robbery, fundamental features were lacking(copy/paste, 3G). Now with phones in the $99, $199 & $299 market with no messy mail-in rebates and decent support structure. We will see a exponential growth with the iPhone within the next 3 years. I'm willing to bet after next years Christmas they will have more than %50 of the Smart Phones Market share.
What all the competition needs to look at to be able to have a chance at survival versus iPhone Planet is study history. The history in how the iPod took over the portable device market. if you remember you will see that Sony also had a periodic table of walkmans, where as Apple had one product.
Having one product is the biggest competitive advantage a company can have. It shows that you understand what elements are a must have and which ones are worth sacrificing. In the end simplifiy the choices for the consumer. Yes some would argue varity is the spice. However now the variety exists in your playlist, facebook friends, twitter buddies, pandora music, etc...