Thursday, October 18, 2012

Smart Phone Future

In an earlier blog post here, I argued that Microsoft Corporation had chosen to expand its business into devices. Apple's success with devices gadgets which include the iPod, iPad and iPhone (the 3 IPs) on which it has based its strategy for dominating the technology industry. It is now known that Microsoft is planning to take the competition into the smart phone and tablet businesses.

With the forceful entry of Microsoft into the smart phones markets, I have been wondering how much growth is reasonably expected. The main barrier to entry into the smart phones businesses is the costs because these gadgets command a premium price. Mobile Business Briefing reports that Smart Phones reached the 1 billion milestone in the third quarter of 2012. According to the report, the milestone is reached after a period of 16 years. In addition, it proves that smart phone owners are still a minority and with increasing  competition, prices will fall sufficiently to generate new demand.    

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