This post is by Evening UST MBA student Vitaly Demin, a strategy consultant at Eames Management Group.
What started happening 2-3 years ago in the mobile phone industry absolutely redefined the entire game. iPhone and Android were the ones who changed it. The two questions here are: do mobile phone makers see the big picture of what happened and where this is all going and are they doing something to save their once very strong and powerful brands?
Back in time when first mobile phones came to market, it was all about hardware and design. Nobody really cared about the software piece because it was very basic. All that people used cell phones for was making calls and sending text messages (and sometimes bragging). Things that mattered at that time were reception quality, battery life, pre-loaded collection of ringtones, black and white or color screen, etc. Then mobile Internet came and software became a little more significant because of web browsing quality, email, etc. but people still cared more about features like Bluetooth, bigger screen, camera, EDGE versus GPRS, mp3 player and so on. Even when Windows Mobile OS hit the market 10 years ago, it was still hardware that mattered the most. The mobile phone makers had all the branding power and were on top of the game. (more…)