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Economics of Smartphone technology

presentation on smartphone technology and it's economic impact, done for economics class

Dean Haller

on 18 May 2011

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Transcript of Economics of Smartphone technology

Smartphones and smartphone technology history types of smartphones what is a smartphone? A Smartpone is a cell phone that uses an operating ststem to allow for the use of applications, Internet access, and software upgrades. The technology used in Smartphones can also be adapted for use in other devices, most notably Tablet Computers A tablet is a portable computer that utilizes a touchscreen interface. Tablets can be destinguished from laptop computors by the lack of a keyboard or mouse, using the touch screen to perform all actions. Smartphones and tablets are usually catagorized by the type of operating system(os) that they run on. There are currently three major operating systems being used in new devices on the market Android OS Android is an open source platform developed by Google in conjunction with The Open Handset Alliance, a coalition of over 80 companies working together to create a complete, free platform for mobile devices. Apple iOS (iPhone and iPad) The Apple iPhone OS is the software behind the Apple iPhone, iPad, and iPod touch. Unlike Google with Android, Apple iOS is a controlled source program, this means that Apple controls every aspect of the software and the devices it's used on, the Apple iOS can only be used on Apple products and it cannot be modified by the general public. This complete control helps Apple make more money, but it limits the general availibility of it's software to only the devices that it produces. This means that there are fewer options for those who want products that use this operating system. RIM Blackberry OS In addition to supplying the source code for the operating system Google does not make or supply phones, instead it provides the software to phone companies and lets them design and supply the phones to go with the software. Open source means that anyone can view, modify, and distribute the source code for a program. Since Android is open source and anyone can modify it the software is constantly evolving and being changed to suite the needs of whoever uses it. The three operating systems mentioned above are by no means the only ones availible, however they are the most widely used and most popular. Smartphones have been around longer than most people think. 1993 The IBM Simon The Simon was the handset that started it all. This device combined a cell phone, a pda, a pager, and a fax machine. The Simon was also one of the first devices to use a touch screen interface. When it lanched in '93 it was the latest technology and only for the Buisiness Elite as this marvel of comunication technology cost $899. 1996 The Palm Pilot While not actually a smartphone the Palm Pilot 1000 introduced and popularized many features found on smartphones today, including.... An Address book calculator calender Email and the ability to syncronize with a computor The Graffiti feature allowed you to write on the screen in stead of typing. Due to all of it's features the Pilot was marketed as the "One Touch Organizer" and sold for $299. 1998 nokia 9110 communicator The second phone in nokia's communicator series, while the 9110 still had a gray-scale display and limited internet access it was one of the first to use a fold out keyboard making it the precursor to today's slide out keyboards. 2002 BlackBerry 5810 The 5810 was the first smartphone made by Canadian company RIM. This phone featured access to email, improved web browsing and other aspects of a pda, the only problem was that a headset needed to be plugged in to make calls. After 2002 the smartphone didn't change much aside from the addition of color displays and the introduction of 3g internet speed in 2003. No truly major changes ocourred in smartphone technology until... 2007 The iPhone Apple's iPhone changed the face of smartphone technology and made smartphones what they are today. The iPhone was so revolutionary that after three years it was still considered the industry standard that all other smartphones were compared to. Fall 2007 Android Google's open source platform debuted a few months after the iPhone. Android took off rather slowly and some people wondered if it could survive in a market already controlled by well known mobile operating systems like iPhone, BlackBerry, and Symbian. Android quickly recovered from it's slow start and became a major competitor in the market. In 2009 Android accounted for over 7% of all smartphones sold in the US. doubling it's numbers from the previous quarter. 2009 Motorola Droid The first Android phone to run on Verizon the Droid is also the phone that brought Android to the top of the market and made it a household name. 2010 iPhone 4 Apples fourth generation iPhone. The iPhone 4 has a redesigned body style, flattening out all the surfaces that were curved on previous versions of the iPhone. The iPhone 4 also incroporates a 5 megapixel main camera and a front facing camera for making video calls. The screen on the iPhone 4 has a 326 pixels per inch resolution, comming near to the upper limits of what can actually be perceived by the human eye. The most notable improvement to the phone's OS is the introduction of multitasking to the iPhone. Android was also the first mobile OS to utilize multitasking, allowing users to switch between multiple running apps. 2011 Android 3.0 Android 3.0, codenamed Honeycomb, is the first platform designed specifically for Tablets. Honeycomb is optimized for using home screen widgets that allow users quick access to infromation without ever leaving the home screen. Honeycomb is designed to work with multicore processers that vastly increase the speed of tablet computers. Honeycomb also supports powerful 3d graphics engines. The iPhone was followed by the iPhone 3G in 2008, which introduced 3g internet to the iPhone, and the 3GS in 2009 which added video recording. Smartphones in the Economy While smartphones have been around for almost two decades they didn't really become widely used untill the release of the iPhone in 2007. Smartphone sales are generally measured against sales of regular cell phones(also called feature phones) to determine their percentage of the cell phone market. Between 2009 and 2010 smartphone shares in the cellphone market grew from 11% to 20.5% doubling their shares in the market. Smartphones are further divided into catagories based on their opereating systems. A study conducted between 2007 and 2009 shows the breakdown of the most popular operating systems that were active on devices during that time period. A study done between 2009 and 2010 showed that the three top operating systems were releativley even in number of active devices. A second study during the same period showed that Android held the lead for devices purchased with 43% of the market for new devices bought. Blackberry OS is the operating system behind the popular smartphones by the Canadian company RIM. The economic trends of smartphone technology are driven by a number of factors. These factors include changes in both hardware and software, but also the way the products are advertised. Some ads point out what their competetors can't do. Some focus on certain features of their device. And some use symbolism to make their brand stand out. Another factor is who certain products appeal to. Android, being an open source platform that is reletivley easy to use is appealing to both programmers and ordinary people. iPhone is popular with many people who are familiar with Apple products like their computors or the iPod. And BlackBerry has often been considered a device for proffesionals and buisiness people. Overall the future of smartphones in general is clear, if market trends continue like they have been smartphones will soon exceed feature phone in shares of the cell phone market. The different operating systems will continue to become more advanced and offer new features to try and control the smartphone market. Because of the speed at which technology changes we are likely to see far greater changes in smartphones and related technologies in the next decade than in the last two combined. 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2011. <http://www.youtube.com/watch?v=bVO8o_PKvVg>. Pros and cons There are several advantages and disadvantages of smartphones and tablets. Pros Ease of use Conectivity Organization Portability Smartphones and tablets are highly portable. Most smartphones are not much larger than 4.5inches. Tablets usually measure between 7 and 10 inches. Tablets and many smartphones use a touch screen that can respond to your fingers or a stylus, eliminating the need for a mouse or keyboard. Smartphone Evolution. Photograph.

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Apr. 2011. <http://blog.toggle.com/mozilla-releases-the-last-beta-for-firefox-4/>. These days many devices are constantly connected to the internet, there are even small versions of many popular browsers availible for smartphones and tablets. Cons While smartphones are a major convenience they are by no means perfect. Environmental impact While many smartphones today are made with environmentally freindly materials this only helps the environment if people refurbish or recycle their old phones rather than throwing them away or sticking them in a drawer and forgetting about them. Recycle_electronics. Photograph. Girls In

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cle-1P2-28416018/cisco-shuts-down-flip>. Distraction As smartphones become "smarter" and capable of doing more some people can become distracted from what is going on around them. Part of the reason that the iPhone 4 is so much smaller is that it uses the steel band on the outside of the phone as the antenna rather than an internal antenna. Because of it's popularity the Droid was the first true competitor with the iPhone. Industry Reports Smartphones and related technologies are doing very well in the market. According to a report released on April 12, technology giant Intel is stuggling as more people buy smartphones rather than full sized computors. Because of this Intel, which is one of the most recognized producers of microprocessors in the country, is being beaten by smaller companies that many people haven't even heard of. Another report released April 13 started that Cisco was going to stop production of it's popular "Flip" video cameras due to competition with smartphones and tablets.
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