Friday, July 27, 2012

Smartphone, Cloud Pair, and Potential Challenge to OEMs

Mobile phone is not a phone anymore. It is a device on indispensably daily and multipurpose use. Nowadays high-end phones capability are brought to many consumer groups in different affordable levels. It is right to say that lower cost high-end devices should be target for OEMs for the next a few years.

However, smart device does not function enough without ecosystem, other than being a communication and calculator tools. Therefore, without cloud, OEMs shouldn’t omit the possibility to have big challenge: The cloud owners that are likely targeting to increase their market share through including the devices into their ownership list. Only some applications could be gateway for cross-cloud access but not in fully broad ways.

Emerging markets like Asia, Africa, South America would progress toward device and ecosystem pair much faster, and therefore targeting low cost smartphone might not serve OEMs in long term. May not be profitable either due to higher competition. Slowdown in Europe economy should be taken into account as well.

In additions, large companies that have cloud, or capability for cloud, might hop in the device market as well, covering both high end and low cost devices with more connected functionalities.

What could help OEMs? It could be independent clouds with different services and widely standardized application interfaces.

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