Open Source: Way to Growth

First it was Android from Google, later came BADA from Samsung and now Symbian from Nokia. Symbian which platformed more than 500 million Nokia phones is now an Open Source and it was launched as a freebie in a USB stick at Mobile World Congress 2010, Barcelona. The compelling force behind rapid open sourcing of different platforms is undoubtedly Google. The unveiling of the Android distribution on 5th Nov 2007 was announced with the founding of the Open Handset Alliance, a consortium of 47 hardware, software, and telecom companies devoted to advancing open standards for mobile devices. Google released most of the Android code under the Apache License. Though open source platforms are not new, the impact of open source and the momentum it has garnered in a short span in the Mobile Industry is commendable.

But, Why would Samsung or Nokia make their code open source which was their USP and fetched Billions? Firstly, it would fuel rapid tandem development. When iPhone 2G was first released in 2007 it brought a new dimension of touch screen phones. It took Apple an year to launch the next version iPhone-3G in July 2008 with most of the bugs fixed and enhancements. It took Apple another year to launch iPhone-3Gs in June 2009. On the contrary, Android which was first released on November 2008, released version 1.5 in April 2009, ver 1.6 in Sep 2009 and ver 2.0 in Oct 2009. Thanks to the Open Handset Alliance where developers worldwide contribute to the open source. Today there are more than 24 mobile handsets which are powered by Android. In order to draw alongside with Apple which has sold over 50 million handsets so far, the rest of the biggies have no option left than to go open source to expedite their implementation.

Secondly, today there are 175,000 iPhone Apps on the net which are downloadable. Apple's Application Development Kit is open source. On an average 150 Apps are being added everyday !! The emphasis on the Apps is so significant that so far more than 3 Billion iPhone Apps have been downloaded which have an average price of 1.5 USD. Apple has a 30% slice of the total App Revenue. Most of these Apps are of social networking category which induce high data activity and are great ARPU generators. The data activity is so high that the existing 3G networks are being used to its maximum capacity forcing the Network Operators to upgrade to 4G. In 2011, majority of the Network Operators will roll out either LTE or Wimax networks to facilitate the Network crunch. An open source Application development platform increases the number of the Apps that will be developed in quick time.

From Network Operators perspective, open source provides a greater control to them. Until now handset manufacturers held their platforms closely that they dictated release of the handsets which made the network operators dependent on them. Now, network operators enjoy a greater freedom and can easily switch to other handset manufacturers. Even if Nokia stops making phones one day, there will be ample number of other handset makers from which network operators can get a Symbian phone.

Lastly, these mobile open source platforms are not limited to Smart phones, they are extended to other converged devices like Tablet. Android based Tablets will soon hit the market in couple of months. The line up includes tablets from Dell, Archos, Asus, Compal, Notion Ink, MSI, Quanta and Vega.

iPhone 2G: More Bugs than Features

The Indian perspective is completely missed out. In a highly price sensitive market, how did Apple think that it can sell iPhone at a price of Rs 31,000 and with many basic features missing? No video calling,no AD2P on the Bluetooth,CAN'T share ANY (mp3, images,videos....) files via bluetooth, can't use as a wireless modem, (you pay ridiculous data charges to activate internet on your phone, but cannot connect it to your PC and browse when you are at home) no copy and paste,(cannot copy a part of a.... say.... email & send it....have to type it out yourself)no 3.2 or 5 megapixel camera,(the 2MP camera it carries is worst camera i've ever seen..... photos look like they have come out of a VGA camera) no video recording with camera,no front camera,no flash.no JAVA supportNo physical keyboard (BELIEVE me! this alone is a dealbreaker...touch keyboard as good as it looks...once you use it then only you come to know about the importance of having a hard keypad)No 3G network yet in India..so why pay for expensive 3G phone if you cant use its 3G services ... so, for India, iPhone 2.0 is no better than its first versionNo removable battery. (You cannot change battery. Have to send it to apple outlet.. Come on now!!!!...This is not an iPod. Its a bloody phone. You cannot live without phone for 2-3 days) No haptic feedback andcannot send MMS,can't use as external storage device (16 GB of utter waste..next time you go to your friend's house & find some interesting songs, movies, etc...sorry you cannot connect your '16 GB' phone and share it!!!! no FM radio,can't use your mp3 files as ringtones,(This is heights man!!!) cannot insert any other SIM card….completely tied to iTunes... Connect to your friend's iTunes & you risk erasing everything on your phone.list goes on & on & on….

The total iPhones sold so far across India is just 500 pieces. It was launched by Airtel and Vodafone. Did Airtel and Vodafone go wrong? Or was it a simple Brand Positioning strategy? Airtel and Vodafone(formerly Hutch) are the biggest Telecom players in the Indian market. With several years of experience they would have a thorough understanding of Customer Buying Behavior. Both these players knew that they couldnt sell more than 1000 phones at that price !!! The strategy they are following is a Brand Positioning Strategy. Apple was making its debut in the Indian handset market. Being late to the market, brand positioning becomes highly significant. Brand positioning is defined as the way the customers perceive this brand in their minds. Is it something ordinary or is it a status symbol or is it a "must have" product. The image that iPhone creates is "Status Symbol". iPhone brand has already achieved this position. Very soon iPhone will be available at almost half of its price tied to a tariff plan from the network operator. This will push the sales to a great extent as people will perceive this a "Status Symbol" at cheaper price !!! Suppose iPhone was priced lower at the beginning itself, customers would perceive this phone as stale apple rather than a status symbol. iPhone has pulled off a wonderful entry strategy. Watch out for the strategy unwind in the coming months.