Monday, June 1, 2009

Fancy Phone vs Smart Phone

The result of 1Q 2009 worldwide mobile phone sales just came out. The world map of smart phones has changed a lot since last year because of Apple's iPhone and RIM's BlackBerry.
http://www.cellular-news.com/story/37570.php

The mid to high end of cell phone market is traditionally defined by so called "smart phones" and "feature phones". A smart phone is (typically defined as) a cell phone being able to add applications to it. A feature phone is a cell phone with a bunch of applications pre-loaded, but an end user can not add software to it. When looking at the data and thinking of those manufacturers that used to have major shares in the smart phone market, I have to add one more category, "fancy phone" to the market mix.

What is a fancy phone? A fancy phone is a smart phone that a consumer buys one for its brand and look, or the prestige comes with the price, but not for its smart phone capabilities. The manufacturer would like to believe its smart phones are popular because of its features. A lot of market data were put together in the effort of proving the correlation between the market share and technological superiority. When true competition shows up, such a market share wanes rapidly, and people begin to realize the king does not have clothes on him.