Linked by Thom Holwerda on Fri 5th Jul 2013 16:30 UTC
PDAs, Cellphones, Wireless "HTC has just announced its unaudited results for the second quarter 2013, and they're not pretty. Despite launching a much-lauded flagship smartphone, the HTC One, the company made just NT$1.25 billion (roughly $41 million) after tax from NT$70.7 billion ($2.35 billion) revenue. In the same quarter last year, the company took in revenue of NT$91.04 billion ($3 billion) and made NT$7.40 billion ($246 million) profit." Make the best Android phone - and perhaps, the best phone period - and still not be out of hot water. And people still claim the smartphone market is not a one-to-one replica of the desktop market. Anywho, another victim of iceberg Apple and hurricane Samsung.
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This would be worth enlarging on
by Tony Swash on Fri 5th Jul 2013 18:14 UTC
Tony Swash
Member since:
2009-08-22

And people still claim the smartphone market is not a one-to-one replica of the desktop market

Perhaps we could unpack that claim a bit. It seems to me that the mobile device market is very, very different to the desktop PC market in important ways.

For example:

In the mobile device market all the profits are being made by two hardware manufacturers and not by a software company charging a licensing fee for the operating system.

In the mobile device markets up until now it has been software which is being commodified and not hardware.

In the mobile device markets the bulk of the value added activity, profitability and monetisation is happening on the platform with the smaller market share.

In the mobile device markets the company who owns the majority operating system does not actually control it's platform in any meaningful sense, it appears that the entities with the biggest clout on the majority platform are not the distributors of the OS or even the OEMs but the carriers, a category of player absence from the desktop markets.

In the mobile device markets the dynamic driving device and OS adoption and use is not dominated by the corporate IT sector but by the personal consumer sector.

Just a few thoughts on why I think the mobile device market is not like the old desktop market, I would love to hear why you think they are a "one to one replica". Or even just similar. This seems a very interesting topic because I think one of the things that bedevils discourse about the mobile device markets is inappropriate comparisons or claims of similarity with the old PC market.

Reply Score: 8

The123king Member since:
2009-05-28

PC/Mobile

Windows/Android - Majority market share, many OEMs
Mac OS X/iOS - Respectable second spot, all hardware made by Apple
Linux/Windows Phone 8 - Is that a hair on my screen or actually a slice in the pie chart?

Yeh, because the Mobile market is not at all similar to the PC market...

If you want to go as far as monetisation, look at iTunes, Windows Store and the Mac App Store. They're all OSes running on Personal Computers and regardless of business model, they all (apart from many GNU/Linux distros) make money for their parent company.

Reply Parent Score: 3

jared_wilkes Member since:
2011-04-25

Were you trying to show that it is the same or completely different?

Reply Parent Score: 0

Tony Swash Member since:
2009-08-22

PC/Mobile

Windows/Android - Majority market share, many OEMs
Mac OS X/iOS - Respectable second spot, all hardware made by Apple
Linux/Windows Phone 8 - Is that a hair on my screen or actually a slice in the pie chart?

Yeh, because the Mobile market is not at all similar to the PC market...



Well for starters the outcome is completely different. In the desktop market the majority market share supported the majority of monitisation, profits and platform actvity. In the mobile device markets the opposite is true and iOS pretty well trounces Android when it comes to platform activity, monetisation and profitability (using any measure of platform of activity).

So the first conclusion one draw is that, unlike in the desktop PC era, market share is a very poor proxy in the device markets for measuring things like the degree or platform activity, health or monetisation. That in itself is pretty huge.

Reply Parent Score: 2