Cheap Smart Phones Set to Ring in Benefits to Global Mobile Software Vendors
Published on: 30th June 2008
Global mobile software vendors are expected to reap the benefits of mobile carriers' willingness to carry data apart from voice and the introduction of 3G phones. With expansion of memory, increase in processor speed, and availability of better networks that allow for faster data transfer, mobile software is in for exponential growth.
New analysis from Frost & Sullivan finds that market earned revenues of over $17.9 billion in 2007 and estimates this to reach $67.3 billion in 2013.
The mobile software market expects to grow at a faster rate than the total software market, thereby increasing its segment size. However, mobile carriers are extremely cautious about spending and mobile software vendors have to prove the value proposition and return on investment of their products before clinching the deal.
One viable business model for software developers would be to partner with mobile carriers and obtain revenue by troubleshooting and fixing day-to-day business model problems. New carrier services require fixes to the billing, marketing, and early product lifecycle bugs. By tackling these issues quickly, mobile software vendors can be a huge help to the carriers.
"Over the next decade, the cycle of software development, where many mobile software products and applications were developed originally for other types of devices, will reverse," says Frost & Sullivan Research Analyst Daniel Longfield. "This reversal is likely because the number of mobile devices manufactured is expected to continue to outpace all other types of personal electronics and also due to smart phones possessing more processing speed and memory."
Mobile software vendors are in for a world of opportunity as the numbers of mobile devices expect to grow with more than a 100 percent penetration rate. This is likely to be enhanced by the steady increase in the minutes of use.
There is a mass move toward mobile devices as people use them for tasks that a few years ago were performed on a desktop computer, a laptop, a MP3 player, an electronic gaming platform, or a digital camera. Mobile software is key to placing mobile devices at the forefront of consumer habits by incorporating the applications and capabilities of other electronic devices into mobile devices. This, in turn, will benefit all members of the mobile value chain.
Going forward, the mobile software market expects to witness greater standardization, technological advances, and competitive changes. All these will further increase the mobile software market size.
"Mobile software vendors are poised to receive large revenue increases from carriers and other mobile market value chain members," says Longfield. "However, these spoils will not come without great effort to patch endless gaps in the current carrier service infrastructure and business models."