Cell Phone Industry Analysis Essay Example
Cell Phone Industry Analysis Essay Example

Cell Phone Industry Analysis Essay Example

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  • Pages: 7 (1783 words)
  • Published: September 29, 2017
  • Type: Research Paper
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The purpose of this survey is to discuss and evaluate the advantages of a specific industry's invention, focusing on Research In Motion (RIM) and their product, Blackberry, in the cell phone sector. Innovation plays a crucial role in all industries as they strive to create new or improved products that meet customer needs. RIM's introduction of the email radio system has made Blackberry one of the leading smartphones in the industry, and this assignment also provides estimates on its market position.

The History of Cell Phone Industry

Centuries ago, communication technology was considered mere fantasy. Machines or systems such as cell phones, internet chat, and email were seen as extraordinary. However, with advancements in communication technology over time (M. Woods - 2005), these dreams have become a reality.

The history of cell phones began with the development of wire


less technology during the 1940s. This innovation was initially used by taxi cabs, police cars, and other transportation forms for two-way communication, laying the foundation for the emergence of cell phones.The incorporation of hexagonal cells and the ability to enable call handoffs between base stations revolutionized the cell phone communication engineering system by connecting it to a phone line through an operator.

In 1946, Swedish police first utilized this new wireless technology by connecting telephone networks with official mobile phones.In the 1960s, the first electronic cell phone was created, although it had limited battery life and could only make six calls before losing power. Users faced challenges as they were confined to one cell area and unable to transfer calls between base stations. However, in 1970, A.E. Joel introduced a handoff system that allowed seamless transfer of phone calls from on

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location to another without disconnection. Cell phone technologies continued improving over time, resulting in three generations: first, second, and third.

Motorola's DynaTAC 8000X was introduced in 1983 as the first portable cell phone after extensive research costing over $100 million that took approximately 15 years to prepare for market launch. This bulky device resembled a brick and weighed around 28 ounces. Initially used primarily in cars due to their size, advancements in cellular networks during the 1990s significantly increased the popularity of cell phones.

During the transition from second generation (2G) cell phones around 1990-1991 in the United States and Europe, systems like GSM (Global System for Mobile Communications), IS-136 (Interim Standard-136), and IS-95 were introduced. These new digital mobile phones revolutionized mobile communication by offering faster network signals, improved call quality, and fewer dropped calls.In addition, the size of cell phones significantly decreased compared to previous "brick" phones, weighing between 100 to 200 grams. They also no longer required large batteries. These innovations resulted in a significant increase in the number of cell phone users. Third generation (3G) phones were developed after building upon advancements made with 2G technology and are still available today. However, the specific criteria for what qualifies as a 3G phone vary depending on the web due to ongoing engineering and service advancements.

Modern day cell phones have exceeded their original capabilities of text messaging and contact management by incorporating features like GPS, Wi-Fi connectivity, and gesture detectors. These advanced devices allow users to access emails, connect to computers, and even make video calls. According to Andy Jones from British Telecommunications, mobile phones have become an integral part of our lives.

Regarding Research in

Motion (RIM) and the creation of the Blackberry device's history, RIM was established in 1984 by two technology students from the Universities of Waterloo and Windsor. This company made a significant impact on mobile communication with its introduction of wireless products such as wireless Point-of-sale devices, wireless modems, and the first widely used two-way messaging beeper.In 1998, RIM introduced the compact RIM 950 handheld device with a QWERTY keyboard for managing emails, contacts, and calendars. The first Blackberry device with two-way functionality was launched in 1999. However, it wasn't until the release of the 5810 model in 2002 that users were able to globally push email and SMS messages. QWERTY phones gained recognition as valuable office tools among businesses. The popularity of Blackberry continued to grow with the introduction of color models in 2003 and Wi-Fi capabilities in 2004.

Today, Blackberry is considered one of the top cell phone brands because its advanced features enable seamless communication with offices even when professionals are away. It has also attracted interest from non-business users for internet connectivity, GPS navigation, and photo sharing purposes.

According to Peter Drucker's concept of innovation, it refers to a change that brings improved performance at a new level. Creativity plays a crucial role in driving innovation by generating fresh ideas and solutions while setting new standards for personal success. Understanding and being influenced by others' ideas is essential for successful innovation.

Innovation is vital across all industries as it allows continuous improvement and progress in their respective fields. Organizations strive to meet future customer expectations through new innovations requiring comprehension and evaluation of available opportunities.Creativity involves significant changes in form, structure, process, appearance, or character

to transform existing situations into a more promising future. In essence, creativity alters the present state to yield greater benefits. In the business world, creativity signifies the beginning of new possibilities.

Measuring the outcomes of innovation is complex and challenging due to its various dimensions and activities involved. The primary focus of innovation lies in introducing novel products or processes that may include using cheaper materials, enhancing existing products, exploring avenues for improvement, and facilitating further inventions. According to R.Landau & N.Rosenberg (1986), the process of transforming innovation into technological and economic considerations is intricate.

The innovation of Blackberry raises the question of whether it is a radical or step-change invention. Despite its small size, Blackberry has revolutionized communication by allowing users to send and receive emails on the go. This has been particularly beneficial for corporate executives, government officials, and professionals who prioritize efficiency in business dealings.

Jim Balsillie, Co-CEO of Blackberry believes that introducing the device earlier may not have been successful due to limited email use at that time. However, the timing was right for the market and its unique value proposition.Blackberry occupies a middle ground between laptops and mobile phones, offering unique advantages but also presenting challenges such as data security and managing complex images compared to its counterparts. In today's competitive business world, where time is crucial, Blackberry aims to provide efficient communication through its clip feature for checking emails and completing tasks when away from a computer. Since its launch in 1998, this powerful device has become a sensation in the market. The Research In Motion (RIM), manufacturer of the Blackberry, has experienced a global surge in sales and popularity.
2009 Market:

- 14,911.2 shares and 42.1% gross sales
Research in Gesture - 7,233.6 shares and 19.9% gross sales
Apple - 3,938.8 shares and 10.8% gross sales
HTC - 1 ,957 .3 shares and 5 .4% gross sales
Fujitsu - 1 ,387 shares and 3 .8% gross sales
Others - 6,896.4 shares and 18.% gross sales

2008 Market:
Nokia -14,588.6 shares and45.1 %gross sales
Research in Gesture-4,311..8sharesand13.3 %grosssales
Apple-1,725..3sharesand5..3 %grosssales HTC-1 ,276 ..9sharesand4%
Fujitsu-1317 .5sharesand4.
Others-6896..18%.The table provided compares the market share and gross sales of various companies in the smart phone industry during the first quarters of 2009 and 2008. Gartner analysts attribute the increase in smart phone sales to the success of Research In Gesture and Apple. According to Gartner's chief analyst, Roberta Cozza, this growth is driven by a demand for touch screen devices at different price points, as well as advancements in smart phone technology worldwide. Consumers are increasingly desiring mobile email, music services, and internet access on their phones.

iSuppli, an electronics market research firm, reports that the production cost per unit for Research In Motion's Blackberry Storm smartphone is $20289 while an iPhone costs $17433. Despite this cost difference and iPhone's popularity, RIM remains ahead in smartphone sales. In Q4 alone, RIM shipped 4.4 million Blackberry smartphones and a total of around 14 million for fiscal year 2008 - more than double the previous year's sales of 6.4 million units. On the other hand, Apple sold 2.3 million iPhones from October to December and approximately 4 million since its US launch.

According to Canalys research data, Blackberry accounted for a 41% share of all smartphone sales in the US during Q4 while iPhone held a 28% share. RIM has been targeting the consumer market

with hopes of becoming a leader in that space.
Despite the global economic crisis, CEO Jim Balsillie has stated that their goal is to increase revenue and profit from Blackberry sales. In Q4 of 2009, RIM surpassed analysts' expectations with a net income of $518.3 million, showing a growth rate of approximately 26%. The revenue for that quarter was $3.46 billion, an impressive 84% increase compared to the previous year. Balsillie expressed satisfaction with Blackberry sales during this period and shared plans for product enhancement and targeting new audiences by introducing features such as Java and Adobe Reader applications to improve smartphone experiences in terms of internet usage (Tom Young Computing, April 03, 2009). Blackberry applications are designed to provide easy access to information without any complications related to data format. Despite economic challenges, RIM intends to partner with T-mobile in order to enhance customer service. The company is determined not to lose its market position and is committed to improving their products. Blackberry dominates the wireless email representation in the smartphone market, being sold in North America, Europe, and gaining popularity in Asia Pacific region. It revolutionized the cell phone industry by integrating wireless technology into smartphones for emailing purposes as well as radio connectivity (Tom Young Computing). Nowadays, smartphone users demand internet connectivity and email access as standard features. RIM founded Blackberry back in 1998 and quickly gained popularity despite facing competition from Nokia and iPhone brands.RIM's goal is to lead the industry through continuous innovation and new product development that meets consumer expectations and increases sales. The improvement of technological products is crucial for organizations to stay ahead. Various sources and information on

topics such as smartphones, Blackberry models, creativity, economic growth, and the profit growth of the Blackberry brand are interconnected through hypertext transfer protocol (http) links.

Some sources mentioned include New Scientist, Bright Hub, The Link Magazine, Hub Pages, Telos Publication, Ralph Landau and Nathan Rosenberg's book, Swastik Nigam's article,Business Week magazine,Tom Young Computing,and a city called Stamford. According to a report by Gartner in 2009, global mobile phone sales declined by 8.6% during the first quarter; however smartphone sales increased by 12.7%. The report can be accessed at http://www.gartner.com/it/page.jsp?id=985912 .

For information on the cost-effectiveness of Apple iPhones visit http://laptopcom.blogspot.com/2009/01/apple-iphones-are-less-costly-to.htm . Additionally The Times Online offers insights on the telecom industry which can be found at http://business.timesonline.co.uk/tol/business/industry_sectors/telecoms/article3676963.ece .

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