The Changing Landscape Of Smartphone Domination – Can Silicon Valley Stay At The Top?

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smartphone industryWhen smartphones first hit the markets, they came from Finland or Canada, the locations of Nokia and Research In Motion respectively. Soon, Apple and Samsung took over, therefore making California and South Korea the new smartphone hubs. Google is also a dominant figure in this list, because it controls the apps, software and daily functionality on smartphones, even though it doesn’t have any leading phones itself. So right now, smartphone domination is shared by Silicon Valley and South Korea. But it seems like tomorrow’s leaders in this burgeoning industry are coming from a different part of the world – China.

In terms of software, Apple’s iOS and Google’s Android are the most pervasive ones. However, the iOS isn’t quite as liked as it used to be. Apple has repeatedly disappointed with its apps and updates, and more Apple users are actually resorting to Google’s products within their smartphones. Android has a different kind of problem. The phone makers like HTC, LG, etc. that partner it are suspicious of Google’s plans for the future.

Google has indicated several times that it wishes to mark its presence in the hardware market with phones like the Nexus. Recently, the tech giant bought Motorola and a new phone announcement is expected at the upcoming Google I/O. Google’s current hardware partners are therefore considering software of their own, with Samsung already set to launch its Tizen OS, developed together with Intel.

Soon, the Android loyalists and Samsung fans that were married for market domination could be split into two fragments, weakening both industry leaders. Mozilla, Ubuntu, Jolla and HP are all ready with their own operating systems to take advantage of the changing consumer sentiment and growing smartphone market. In terms of hardware also Chinese makers like Lenovo, Huawei, ZTE, etc. hold more potential than the current market titans. In 2012, Huawei emerged at the no. 3 worldwide smartphone seller. Notably, its products are a lot cheaper than the average iPhone or Samsung’s Galaxy series.

There is a strong inclination in emerging markets towards low-cost smartphones, and Chinese manufacturers are a lot better equipped to service that. After their success in China, Huawei and ZTE have set their sights at Europe and U.S. Both companies were very visible at CES 2013, sort of telling the tech world that they have arrived. The current kingpins better have something marvelous up their sleeves for this year!

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