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Competition is heating up in the global cellular phone market as sales recorded more than 600 million units last year. With this situation in mind, manufacturers are focusing on either style or technology to see them through the current maelstrom. Until now, cellular phone makers have competed on identical technological functions or features such as miniaturization, cameras, and color screens, etc. From now on, though, they need new development and marketing strategies in order to maintain and expand their market shares, noting that manufacturers in other countries have already incorporated the above functions as standards.
Motorola got good grades for introducing its ultra-slim RAZR phone, while in flurry of style, Nokia launched its Roaring '20s series. Motorola CEO Edward Jander said that a well-styled cellular phone makes users want to make a call or to log into the Internet using the same device. One of the most important principles in designing a Motorola cellular phone is simplification, commented Mr. Jander. He also said that software technology would make or break a cellular phone from now on, while virus protection for your mobile is going to be the booming business of the next five years.
However, market experts differ as to whether technology or design is the better strategy. A cellular phone analyst for Gartner, Inc. said that technology is not enough because technical skills for developing cellular phones have already plateaued over the past few years. Therefore, other elements such as emphasizing design must be considered but competing on the basis of camera pixel capacities such as 3-mega, 5-mega and 15-mega is not a good idea.
On the other hand, it is worth remembering that Nokia had a tough time over the last few years because the company did not keep up with design trends and failed to introduce a folder-style phone when market preferences pointed strongly in that direction.
Source of information: Cnet News
Written by Kim Sung-wook (swkim@kotra.or.kr) Kotra, San Francisco,
Feb. 26th 2005
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