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The Economics of the Smartphone

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by

Sahad Kassam

on 15 May 2013

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Transcript of The Economics of the Smartphone

My Prediction: ..2020 2009 2010 2011 2012 The Economics 0 + - = 9 8 7 1 2 3 4 5 6 c Some Facts According to Moore's law discovered by Gordon Moore in 1965, computing power is to double every 18 months for the same price, with the incredible increases in computing power, our smartphones today hold the computing power that was used to put the first man on the moon. - Double Day Publishing Smartphones The Economics Of Smartphones Thesis: Methods of using everyday necessities will one day be replaced by a pocketable PC also known as the smartphone What Are Some Things Smartphones Could be Replacing? MP3 Players/iPods Desktop web browsing Desktop email, as well as paper mail Cameras (Video and Digital) Photo Albums Homephones DVD PLAYERS GPS Weather Networks on TV Tickets/Coupons Notepads Watches Calling Services Calendars Game Consoles (Mainly Portable) Desktop Stock Checks Paper Newspapers/Magazines CDS/Music Stores How Can We Be Sure the Smartphones Will Make These Replacements? Email Here are some Examples: Smartphone Camera Although the PC is able to perform many more tasks on it than the smartphone, it also has many more years of experience in the market place than the smartphone has, yet still smartphones have made enough progression to even be compared with the PC as it allows you to perform most of the tasks that can be performed on a PC but unlike a PC smartphones can perform most of these tasks from anywhere. -All fingers are in motion in order to get tasks done therefore completing tasks faster (e.g. word processing)
-Larger screen
-Faster Qualities of Mail Vs. Email Mail -Paper
-Costly (Purchase of paper, ink, printer, envelopes, couriers, etc.)
-Found in mailbox at one location
-Could take multiple days for delivery -Paperless
-Costs virtually nothing compared to direct mail
-Able to retrieve emails anywhere with a smartphone or computer
-Instant delivery By Looking At This We Can See:
-Email is more environmentally friendly (saving us from many environmental costs of shortages of materials and such)
-Email is faster
-Emailing is more cost efficient What Smartphones do to make emailing even better? Although PC's give us great access to emailing as well, smartphones allow for people to view, respond and compose emails wherever and whenever they would like. Smartphone Camera vs. Digital/Video Camera Digital/Video Camera Smartphone Camera vs. Point and Shoot Camera Smartphone vs. PC The Apple iPhone was the first smartphone with a multi-touch user interface -Statista.com -Fits in your pocket and has been put into a device that serves more than one purpose
-Photos can be easily enhanced right after or even during the time of picture
-Many Smartphones now offer 1080p video quality
-Sharing abilities
-Cost efficient Although these comparisons made do show a lot of great potential for the smartphone market along with the replacements the smartphones are making, it may not be enough to say for sure quite yet, so here are some additional stats to show the progression and over taking of the smartphone market. -Quality varies based on price of camera
-More camera features
-Better flash
-Better zooming lens As you can tell by the stats, smartphones are replacing many everyday necessities by implementing these everyday necessities into the operating systems. The smartphone market has a lot of future potential and is a market that will continue to grow very competitively over the years to come. Through the above statistics, this is my prediction By Looking At This We Can See:
-Using the camera on a smartphone is a lot more convenient
-The advantages offered by the digital/video camera can be considered useless advantages over the smartphone due to the ability for the smartphone to enhance the picture during or after the taking of the picture Some Statistics: According to smartphones.findthebest.com a majority of the smartphones carry an 8 Megapixel camera with digital zoom and according to cnet.com these smartphones can be found at approximately $500-700. According to amazon.com you can get an 8 megapixel camera with approximately 3x optimal zoom for $150-200. What is a Smartphone? A study was conducted by Nielson and posted online by TechCrunch that provides the following info: -In March/2012, smartphones were in use by 50.4% of mobile consumers in the United States -In December/2011 smartphones were in use by 47.8% of mobile consumers in the US -This shows a growth of 2.6% in 3 months According to the Business Insider Report: -The US smartphone penetration has reached over 50% -About 235 million of the approximately 310 million people in the US use mobile devices -Approximately 250 million of the 310 million people are above the age of 14 "It seems likely that almost all of these folks will eventually have smartphones." -Henry Blodget, Business insider ...Business Insider Report As you can see the US did fall a bit as feature phones did experience a slight increase in penetration -Although the smartphone market has penetrated a lot and penetration will start to slow down, there are many other countries that have yet to penetrate A smartphone is basically a phone that doesn't just make calls but is also a device that fits in your pocket and allows you to perform the tasks of your computer Smartphones PC(Includes Laptops) -Smaller
-Can be taken anywhere
-Internet connection anywhere
-Making/receiving calls from almost everywhere
-Versatility Smartphones Overtaking PC's -Technology Analysis firm, Gartner predicts that by 2013 there will be 1.82 billion smartphones and 1.78 billion PCs (not including tablets) -"As the price of such small but powerful devices continues to fall and hardware firms continue to innovate, it's clear that mobile computing is going to be a very big deal for the foreseeable future." -Gary Marshall, Techradar Mobile app market went through the roof GPS AND MAPS COME TO THE SMARTPHONE MARKET 2009-2010 2010-2011 2011-2012 2012-2020 Although what the numbers are showing is that a camera will come cheaper, when taking into consideration the many other features that come along with the smartphone, it definitely becomes the smarter purchase Smartphones will have successfully fully replaced a majority of our everyday necessities SMARTPHONES OUTSHIPPED PCs Smartphones: 488 million PC: 415 million
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