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Apple Conquers a Divided Mobile Market
Anyone who has a smart phone or is thinking about a new smart phone knows about Apple's iPhone. It is the biggest name in the smart phone market. When a new customer decides to buy a smartphone, they first decision to make is if they are going to get an iPhone, or look for another brand.
The biggest threat to Apple is losing their name recognition. They could lose it if another company were to dominate the mobile space (like Microsoft dominated the desktop starting with Windows 95). Lets take a look at the major competitors and see if they are capable of dominating of mobile operating system.
First up is Research in Motion, which makes the Blackberry line of smart phones. The most popular version is the Curve. It has a great email client with a physical keyboard, but little else. It is also showing it's age with minimal applications and has been losing market share over the past year. RIM has been trying to get users to move to a more advanced device like the Storm with little success. It seems like users are moving from the Curve to other competitors. Look for RIM to rapidly lose market share this year as more contracts expire.
Next is Google's Android. Android is an OS, not a specific device or line of product. There is no device leader in the Android world, as new phones come out every month. Google's OS has really taken off this year, as it has passed Apple in mobile smartphone OS market share. Android is the OS that stands the best chance at really dominating the market like Windows did. But there are dark clouds on the horizon for Android, in the form of increased competition. Verizon, which used to push Android and their Droid lineup, now has the iPhone, and they are using their marketing muscle to back Apple. Microsoft and HP are entering the market as well. With both carriers and handset makers leery of Android's cheap hardware specs, Androids long-term success could be muted.
Microsoft Phone 7 is the next major competitor to enter the mobile field. Although sales have been dismal so far, Microsoft needs to be in this space and they have a lot of cash to force their way in. Nokia's recent move to Windows Phone 7 — with a small multi-billion dollar investment by Microsoft should really help Microsoft push Phone 7 domestically and internationally. Microsoft also has a massive developer community for application development. It may take three version to get it right, but Microsoft will keep working on their OS until the Window and Office wells run dry, but those wells are very, very, deep.
The newcomer onto the field is HP with their purchase of Palm's Web OS. They are the last out of the gate, but they also have a number of key advantages. HP has a massive distribution system that surpasses all rivals, including Apple. They are a household name and know how to build hardware en mass. While they still may be a dark horse with a very small developer community, they also have great potential with a near vertical ecosystem. In many ways, they are not only copying Apple's OS in their WebOS, they are copying Apple's entire business model.
Each of Apple's competitors have their own strengths and weaknesses, except RIM, they are just full of weaknesses. Each OS, Android, Phone 7, and WebOS have good chances to catch fire in 2011. Microsoft and HP should start gaining users at Androids expense, as all three are in the non-Apple market. Users will still choose iPhone or one of these competitors, which fragments everyone else's share. With no dominate leader to compete with Apple, iPhone will gain more strength and market share with the biggest brand name in the mobile market. The longer Apple stays on top in brand recognition, the harder they will be to defeat.
