U.S. smartphone penetration is only expected to hit 10 percent this year, but growing fast. With the market split among 6 current competitors, the natural order eventually will be consolidate or condense.
But we won’t see systems leave the market for a while, for three reasons. 1. The margins for high-end phones are high, so the ability to monetize and the incentive to stay in the market are both high. 2. The market is maturing and the overall “size of the pie” is growing, so all players will see a return on their initial investments for the next few years. 3. The innovation cycle is still in the early stages, which means that new products can be expected that will significantly alter the playing field.
I have my own predictions on which players will survive when the shakeout happens. For instance, I predict 3 will be gone by 2012, including Android. You can read at http://www.BroodingSavage.com.
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U.S. smartphone penetration is only expected to hit 10 percent this year, but growing fast. With the market split among 6 current competitors, the natural order eventually will be consolidate or condense.
But we won’t see systems leave the market for a while, for three reasons.
1. The margins for high-end phones are high, so the ability to monetize and the incentive to stay in the market are both high.
2. The market is maturing and the overall “size of the pie” is growing, so all players will see a return on their initial investments for the next few years.
3. The innovation cycle is still in the early stages, which means that new products can be expected that will significantly alter the playing field.
I have my own predictions on which players will survive when the shakeout happens. For instance, I predict 3 will be gone by 2012, including Android. You can read at http://www.BroodingSavage.com.
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