The use of mobile devices to consume, process and generate content is increasing at a staggering pace. Growing consumer interest in graphics, images, music and video is driving applications such as games, MP3 players, cameras and TV reception on mobile devices ranging from high-end all-in-one handsets to the most basic mobile phones.
The rapid deployment of more capable devices supporting new attractive content and communication services tempts consumers to upgrade their phones every 12 to 18 months. One notable issue that the average consumer is unaware of is the development of the underlying operating systems. High-end devices powered by advanced operating systems such as Symbian are seeing strong growth, but still have a market share that is only a fraction of midrange and low-end devices.
Feature Phone vs. Smart Phone
This raises interesting questions. Will the future consumer favor so-called feature phones, which come with a few cost-efficient and well-implemented key services, and be limited to simpler Java-based applications? Or is the winner the high-end smart phone, with its potent operating system, ample options and broad set of applications? In the PC world, the outcome was clear. The operating system that managed to reach critical mass first and to create a large community of application developers came out ahead and built a huge software industry around itself. Is the higher price and fragmented market for smart phones a serious hindrance or just a delay for their future success? Or will the ubiquitous Java, with its increasing support for more media formats enable the feature phones to reach critical mass first?
Content is king, again
These are big questions with wide-ranging effects. No ultimate answers are easily available, but two trends seem likely. First, the continued development of handsets and the network infrastructure creates many new business opportunities. Secondly, simple, easily adopted content and are - 2004 communication-related applications and services seem to be dominating the short- term growth of mobile consumption. Both trends drive the need for innovative mobile startup companies.
This is an issue that has created a lot of discussion in the Nordic countries in the past several months. After the bubble burst, many startups disappeared, but the strongest survived, and now with the economy in much better shape again, we have seen signs of comeback from entrepreneurs. The development and widespread adoption of new devices and innovative applications may well be the trigger that sets the number of start-ups on the path of higher growth again.
With this, we want to wish you all the best for this summer and hope you will enjoy the latest offerings on your mobile phone!
