Mobile Operating Systems Shake Up the Industry

Strategic Insights -

The buzz at Mobile World Congress in Barcelona is not just about the latest smartphone devices, but rather the software that powers them. With the emergence of Android and Apple's iPhone, traditional players like Nokia and Microsoft are stepping up their efforts to stay relevant.

Key Takeaways:

  • Google's Android software has been gaining momentum, with Vodafone announcing plans to sell Android-powered HTC phones in several European countries, followed by global sales later this year.
  • Microsoft has reached a deal with LG Electronics to use a Microsoft operating system in 50 of its smartphones, marking a significant entry into the mobile market.
  • Nokia, the creator of the leading cellphone operating software Symbian, has introduced two new smartphones using its Symbian platform, while Research In Motion is continuing to promote its operating system on non-BlackBerry devices.
  • Yahoo has announced a revamped mobile operating system available on the Web and as an application to the iPhone, further expanding the competition in the mobile market.
  • The shift towards mobile operating systems has led to a decline in Symbian's market share, from 74.3% in 2005 to 52.4% in 2008, according to Canalys.
  • Android, while controlling less than 1% of the market, represents a significant move towards the open-source movement in the mobile business.
  • Google considers Android a serious new business venture, not just a way to promote its desktop search business, and is expected to generate significant revenue for the company.

Statistics:

  • Symbian's market share has declined from 74.3% in 2005 to 52.4% in 2008, according to Canalys.
  • Android controls less than 1% of the market, but represents a significant move towards the open-source movement.
  • Microsoft's deal with LG Electronics covers 50 smartphones.
  • Nokia's acquisition of remaining Symbian shares is expected to be completed in June 2010.
  • Samsung uses a proprietary operating system on approximately 100 models, although it will offer a mix of operating systems, including Symbian, Windows, and Android starting in the second half of 2010.
  • About 60% of Orange's sold phones are equipped with Symbian.

Sources:

  • Vodafone statement
  • Microsoft press release
  • Nokia press release
  • Canalys research report
  • Sun Microsystems website
  • Google statement
  • Symbian Foundation statement
  • Samsung press release
  • Orange press release
  • Palm press release