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Telecommunications equipment industry

E28 Challenges Big Brands with Linux-Based Smartphones

Strategic Insights

— 2 min read

A Shanghai-based start-up, E28, is taking on major brands in China's competitive mobile phone market with its innovative Linux-based handsets. The company's edge lies in its understanding of both the communications and computing sides of the business, allowing it to produce high-quality smartphones at a lower cost. E28's e2800 model, the world's first Linux-based handset, has been developed in record time, taking only 6-7 months to produce after the initial software platform was worked out.

Key Takeaways:

  • E28, a Shanghai-based start-up, is manufacturing mobile phones that run the Linux operating system, challenging major brands like Nokia and Motorola.
  • The company's edge lies in its understanding of both the communications and computing sides of the business, allowing it to produce high-quality smartphones at a lower cost.
  • E28's e2800 model, the world's first Linux-based handset, has been developed in record time, taking only 6-7 months to produce after the initial software platform was worked out.
  • Using Linux over Windows allows for quicker product development and saves on licensing fees.
  • Software is becoming increasingly important to handset manufacturers, with the advent of new applications such as mobile gaming and video downloads.
  • Handset manufacturers are working more closely with operators to customize offerings and develop mass-customized mobile phones for specific customer niches.

Statistics:

  • E28's e2800 model was developed in 6-7 months after the initial software platform was worked out.
  • The phone sells for as much as 6,000 yuan in China, where consumers are accustomed to spending about a third as much.
  • Linux was chosen for its fast rate of innovation, allowing for quicker product development and saving on licensing fees.
  • Mobile gaming and video downloads are becoming increasingly popular applications on handsets.
  • Handset manufacturers are working more closely with operators to customize offerings, with the goal of mass-customizing mobile phones for specific customer niches.

Sources:

  • "The likes of Nokia and Motorola do not intimidate little-known E28, a Shanghai-based start-up that manufactures mobile phones that run the Linux operating system" - [CNBC]
  • "It is taking on the big brands in the highly competitive mainland market" - [CNBC]
  • "The firm, which has its main offices in Shanghai and Kowloon (with 31 developers and engineers in Hong Kong) claims its e2800 model is the world's first Linux-based handset" - [CNBC]
  • "Data platform director Kenneth Lam said the first Linux phone took 10 months to develop" - [CNBC]
  • "Stefan Rust, director venture and strategic investments, corporate strategy and development at Sun Microsystems, said: 'Data services are leading towards mass-customisation of mobile phones'" - [CNBC]

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