FINANCIAL ANALYSIS

Business and Business Environment

Business and Business Environment

Characteristics of Mobile Phone Industry

Mobile phone industry is considered as one of the fastest growing industry in the world, and it has been expanding rapidly around the globe as the emerging of developing countries. Since the introduction of mobile phones in 1994, this industry has gone through with three major changes so far. The first phase indicates the first colored phone screens in 2002. In the second phase, the multimedia phones were emerged into the market during 2004 to 2006. In the third phase, the smart phone technology has come by the year of 2007 (Frommer 2010).

The total number of mobile phone subscription has reached over the 4 billion in 2009. The growth rate of the global mobile phone market has increased by 8.5% in the year of 2011 and attained the value of 150.4 billion by manufacturing the 1,348 million of units (Frommer 2010). By the year of 2016, mobile phone market forecasted their value that will be increased up to 203.8 billion with a growth rate 35% as compared to 2011.

For sustaining the mobile phone market, companies have two crucial factors; innovative and service phase that may lead to attract the potential buyers during the industry's mature life cycle. Innovation and technology is become more advance yearly due to which the market has become more competitive presently (German 2011, pp.11-13). Those companies that continue to design, making upgrade time to time and hit the market first will be able to get a competitive advantage over competitors. As I have selected two mobile phone companies; one is “Samsung” and other is “Motorola”.

Answer [a]

Top Companies

The mobile phone market is dominated by few leading companies. These are Samsung, Nokia, Apple, HTC, Motorola and LG. By the year of 2012, Samsung and Apple have served about 60% to the mobile customers. The remaining 40% are served by the rest of mobile phone companies.

Samsung is more towards the newest product that is based on the latest technology and innovation that makes its superior position in the mobile phone market. Samsung is awarded as the second largest mobile phone manufacturer in the world by the year of 2007. While Motorola is engaged towards the consumer side by dealing cell phones and smart phones and the enterprise side by dealing various kinds of equipment. Motorola focus on mid tier and top tier devices and they have sold mid tier devices in greater volume globally. On the other hand, the top-tier mobile phones are successful in the United States of America (Heeks 2009, pp. 76-92).

Operating System and Smartphones

By the year of 2012, the trend of smartphones has been grown in the mobile phone market. The functions and applications of smartphones are like computer operating system. These smartphones work on the Android applications while Apple runs iOS exclusively.

Samsung is offering its smartphones by having Android version in their all sets that starts from the series of Samsung Galaxy that has become the top United States mobile phone market (Heeks 2009, ...