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Analysis of Smartphone Industry with focus on market leader

Submitted by: Ishan Chandra BBA 6th A7006409011 Under guidance of:

Dr. Sachin Srivastava



Chapter Topic No.


1.1 Modern Smartphones 1.2 History 1.2.1 Early Years IBM Simon Nokia 9000 1.2.2 Symbian Ericsson R380 Nokia 9210 Nokia N 95 1.2.3. Windows Mobile 1.2.4. Blackberry OS 1.2.5 iOS iPhone 1.2.6. Android Galaxy Nexus 1.2.7. Bada


Company Profile

2.1 Market Share 2.2. Samsung Telecommunication 2.3. Nokia 2.4. BlackBerry

2.5. Highest Selling Smartphones


Data Analysis & Interpretation

3.1. Scope of the project 3.2. Objectives of the project 3.3 What is research 3.4 What is research methodology 3.4.1 Types of research Methods 3.5. What is Data collection? 3.6. Qualitative Analysis 3.7 Research Method 3.8 What is a questionnaire 3.8.1 Types of questions 3.9. Data Source 3.10 What is research population 3.10.1 Relationship of sample population in research 3.10.2 Types of population in research 3.11 Target Population & Sampling Plan 3.12 Target Areas 3.13 Literature Review


Suggestions & Findings

4.1 reasons for sucess 4.2 Major threats 4.3 Findings


5.1 Recommendations

5.2 Conclusions


Annexure I Questionnaire Annexure II Reference

Chapter 1: Introduction

1.1 - Modern Smartphones

A smartphone is a mobile phone built on a mobile computing platform, with more advanced computing ability and connectivity than a feature phone. The first smartphones were devices that mainly combined the functions of a personal digital assistant (PDA) and a mobile phone or camera phone. Today's models also serve to combine the functions of portable media players, low-end compact digital cameras, pocket video cameras, and GPS navigation units. Modern smartphones typically also include high-resolution touchscreens, web browsers that can access and properly display standard web pages rather than just mobileoptimized sites, Flash compatibility, and high-speed data access via Wi-Fi and mobile broadband. The most common mobile operating systems (OS) used by modern smartphones include Apple's iOS, Google's Android, Microsoft's Windows Phone, Nokia's Symbian, RIM's BlackBerry OS, and embedded Linux distributions such as Maemo and MeeGo. Such operating systems can be installed on many different phone models, and typically each device can receive multiple OS software updates over its lifetime. The distinction between smartphones and feature phones can be vague and there is no official definition for what constitutes the difference between them. One of the most significant differences is that the advanced application programming interfaces (APIs) on smartphones for running third-party applications can allow those applications to have better integration with the phone's OS and hardware than is typical with feature phones. In comparison, feature phones more commonly run on proprietary firmware, with third-party software support through platforms such as Java ME or BREW. An additional complication in distinguishing between smartphones and feature phones is that over time the capabilities of new models of feature phones can increase to exceed those of phones that had been promoted as smartphones in the past. Platform, with more advanced computing ability and connectivity than a feature phone. The first smartphones were devices that mainly combined the functions of a personal digital assistant (PDA) and a mobile phone or camera phone. Today's models also serve to combine the functions of portable media players, low-end compact digital cameras, pocket video cameras, and GPS navigation units. Modern smartphones typically also include high-resolution touchscreens, web browsers that can access and properly display standard web pages rather than just mobile-optimized sites, Flash compatibility, and high-speed data access via Wi-Fi and mobile broadband.

1.2 History 1.2.1 Early years IBM Simon
The first smartphone was the IBM Simon; it was designed in 1992 and shown as a concept product that year at COMDEX, the computer industry trade show held in Las Vegas, Nevada. It was released to the public in 1993 and sold by BellSouth. Besides being a mobile phone, it also contained a calendar, address book, world clock, calculator, note pad, e-mail client, the ability to send and receive faxes, and games. It had no physical buttons, instead customers used a touchscreen to select telephone numbers with a finger or create faxes and memos with an optional stylus. Text was entered with a unique on-screen "predictive" keyboard. By today's standards, the Simon would be a fairly lowend product, lacking a camera and the ability to download third-party applications. However, its feature set at the time was highly advanced. The Nokia 9000

The Nokia Communicator line was the first of Nokia's smartphones starting with the Nokia 9000, released in 1996. This distinctive palmtop computer style smartphone was the result of a collaborative effort of an early successful and costly personal digital assistant (PDA) by Hewlett-Packard combined with Nokia's best-selling phone around that time, and early prototype models had the two devices fixed via a hinge. The Communicators are characterized by a clamshell design, with a feature phone display, keyboard and user interface on top of the phone, and a physical QWERTY keyboard, high-resolution display of at least 640200 pixels and PDA user interface under the flip-top. The software was based on the GEOS V3.0 operating system, featuring email communication and text-based web browsing. In 1998, it was followed by Nokia 9110, and in 2000 by Nokia 9110i, with improved web browsing capability. In 1997 the term 'smartphone' was used for the first time when Ericsson unveiled the concept phone GS88, the first device labeled as 'smartphone'.

1.2.2. Symbian Ericsson R380 In 2000, the touchscreen Ericsson R380 Smartphone was released. It was the first device to use an open operating system, the Symbian OS. It was the first device marketed as a 'smartphone'. It combined the functions of a mobile phone and a personal digital assistant (PDA). In December 1999 the magazine Popular Science appointed the Ericsson R380 Smartphone to one of the most important advances in science and technology. It was a groundbreaking device since it was as small and light as a normal mobile phone. In 2002 it was followed up by P800. Nokia 9210 communicator Also in 2000, the Nokia 9210 communicator was introduced, which was the first color screen model from the Nokia Communicator line. It was a true smartphone with an open operating system, the Symbian OS. It was followed by the 9500 Communicator, which also was Nokia's first camera-phone and first Wi-Fi phone. The 9300 Communicator was smaller, and the latest E90 Communicator includes GPS. The Nokia Communicator model is remarkable for also having been the most costly phone model sold by a major brand for almost the full life of the model series, costing easily 20% and sometimes 40% more than the next most expensive smartphone by any major producer. Nokia N95 In 2007 Nokia launched the Nokia N95 which integrated a wide range of multimedia features into a consumer-oriented smartphone: GPS, a 5 megapixel camera with autofocus and LED flash, 3G and Wi-Fi connectivity and TV-out. In the next few years these features would become standard on high-end smartphones. The Nokia 6110 Navigator is a Symbian based dedicated GPS phone introduced in June 2007.

In 2010 Nokia released the Nokia N8 smartphone with a stylus-free capacitive touchscreen, the first device to use the new Symbian3 OS. It featured a 12 megapixel camera with Xenon flash able to record HD video in 720p, described by Mobile Burn as the best camera in a phone, and satellite navigation that Mobile Choice described as the best on any phone. It also featured a frontfacing VGA camera for videoconferencing. Symbian was the number one smartphone platform by market share from 1996 until 2011 when it dropped to second place behind Google's Android OS. In February 2011, Nokia announced that it would replace Symbian with Windows Phone as the operating system on all of its future smartphones. This transition was completed in October 2011, when Nokia announced its first line of Windows Phone 7.5 smartphones, Lumia 710 and 800.

1.2.3. Windows Mobile

Windows Mobile is a mobile operating system developed by Microsoft for smartphones and Pocket PCs. It is supplied with a suite of basic applications developed with the Microsoft Windows API, and is designed to have features and appearance somewhat similar to desktop versions of Windows. Third parties can develop software for Windows Mobile with no restrictions imposed by Microsoft. Some software applications can be purchased from Windows Marketplace for Mobile until it is discontinued on 9 May 2012. Most early Windows Mobile devices came with a stylus, which can be used to enter commands by tapping it on the screen. The primary touch input technology behind most devices were resistive touchscreens which did not require a stylus and work with any pressed input method; later devices used capacitive sensing. Along with touchscreens a large variety of form factors existed for the platform. Some devices featured slide-out keyboards, while others featured minimal face buttons. In February 2010, Microsoft announced a new phone platform, Windows Phone, to supersede Windows Mobile, incompatible with Windows Mobile devices and software. The final version of Windows Mobile, released after the announcement of Windows Phone, was 6.5.5. Phones running Windows Mobile cannot run software for Windows Phone. Microsoft says that the Windows Phone operating system is incompatible with devices designed for Windows Mobile as "Windows Mobile 6.x devices do not meet Windows Phone hardware requirements designed to ensure a consistent user and developer experience", and software designed for Windows Mobile is incompatible with the new operating system. However, Windows Phone 7 ROMs that are compatible with some Windows Mobile devices have been developed and Microsoft, while not supporting them, has taken no other action.

1.2.4. BlackBerry OS
BlackBerry OS is a proprietary mobile operating system, developed by Research In Motion for its BlackBerry line of smartphone handheld devices. The operating system provides multitasking and supports specialized input devices that have been adopted by RIM for use in its handhelds, particularly the trackwheel, trackball, and most recently, the trackpad and touchscreen. The BlackBerry platform is perhaps best known for its native support for corporate email, through MIDP 1.0 and, more recently, a subset of MIDP 2.0, which allows complete wireless activation and synchronization with Microsoft Exchange, Lotus Domino, or Novell GroupWise email, calendar, tasks, notes, and contacts, when used with BlackBerry Enterprise Server. The operating system also supports WAP 1.2. Updates to the operating system may be automatically available from wireless carriers that support the BlackBerry over the air software loading (OTASL) service. Third-party developers can write software using the available BlackBerry API classes, although applications that make use of certain functionality must be digitally signed. Research from June 2011 indicates that approximately 45% of mobile developers were using the platform at the time of publication.

1.2.5. iOS
iOS (formerly iPhone OS prior to June 2010) is Apple Inc.'s mobile operating system. Originally developed for the iPhone, it has since been extended to support other Apple devices such as the iPod Touch, iPad, and Apple TV. Unlike Windows CE (Mobile and Phone) and Android, Apple does not license iOS for installation on non-Apple hardware. As of March 6, 2012, Apple's App Store contained more than 550,000 iOS applications, which have collectively been downloaded more than 25 billion times. It had a 16% share of the smartphone operating system units sold in the last quarter of 2010, behind both Google's Android and Nokia's Symbian. In May 2010 in the United States, it accounted for 59% of mobile web data consumption (including use on both the iPod Touch and the iPad). The user interface of iOS is based on the concept of direct manipulation, using multi-touch gestures. Interface control elements consist of sliders, switches, and buttons. The response to user input is immediate and provides a fluid interface. Interaction with the OS includes gestures such as swipe, tap, pinch, and reverse pinch, all of which have specific definitions within the context of the iOS operating system and its multi-touch interface. Internal accelerometers are used by some applications to respond to shaking the device (one common result is the undo command) or rotating it in three dimensions (one common result is switching from portrait to landscape mode). iOS is derived from Mac OS X, with which it shares the Darwin foundation, and is therefore a Unix operating system. In iOS, there are four abstraction layers: the Core OS layer, the Core Services layer, the Media layer, and the Cocoa Touch layer. The current version of the operating system (iOS 5.1) uses roughly 770 megabytes of the device's storage, varying for each model. The iPhone

In 2007, Apple Inc. introduced its first iPhone. It was initially costly, priced at $499 for the cheaper of two models on top of a two year contract. The first mobile phone to use a multi-touch interface, the iPhone was notable for its use of a large touchscreen for direct finger input as its main means of interaction, instead of having a stylus, keyboard, and/or keypad, which were the typical input methods for other smartphones at the time. The iPhone featured a web browser that Ars Technica then described as "far superior" to anything offered by that of its competitors. Initially lacking the capability to install native applications beyond the ones built-in to its OS, at WWDC in June 2007 Apple announced that the iPhone would support third-party "web 2.0 applications" running in its web browser that share the look and feel of the iPhone interface. As a result of the iPhone's initial inability to install third-party native applications, some reviewers did not consider the originally released device to accurately fit the definition of a smartphone "by conventional terms." A process called jailbreaking emerged quickly to provide unofficial third-party native applications. The different functions of the iPhone (including a GPS unit, kitchen timer, radio, map book, calendar, notepad, and many others) allowed consumers to replace all of these items. In July 2008, Apple introduced its second generation iPhone with a lower list price starting at $199 and 3G support. Released with it, Apple also created the App Store, adding the capability for any iPhone or iPod Touch to officially execute additional native applications (both free and paid) installed directly over a Wi-Fi or cellular network, without the more typical process at the time of requiring a PC for installation. Applications could additionally be browsed through and downloaded directly via the iTunes software client on Macintosh and Windows PCs, rather than by searching through multiple sites across the Internet. Featuring over 500 applications at launch, Apple's App Store was immediately very popular, quickly growing to become a huge success. In June 2010, Apple introduced iOS 4, which included APIs to allow third-party applications to multitask, and the iPhone 4, which included a 960640 pixel display with a pixel density of 326 pixels per inch (ppi), a 5 megapixel camera with LED flash capable of recording HD video in 720p at 30 frames per second, a front-facing VGA camera for videoconferencing, a 1 GHz processor, and other improvements. In early 2011 the iPhone 4 became available through Verizon Wireless, ending AT&T's exclusivity of the handset in the U.S., and allowing the handset's 3G connection to be used as a wireless Wi-Fi hotspot for the first time, to up to 5 other devices. Software updates subsequently added this capability to other iPhones running iOS 4.

The iPhone 4S was announced on October 4, 2011, improving upon the iPhone 4 with a dual core A5 processor, an 8 megapixel camera capable of recording 1080p video at 30 frames per second, World phone capability allowing it to work on both GSM & CDMA networks, and the Siri automated voice assistant. On October 10, Apple announced that over one million iPhone 4Ss had been pre-ordered within the first 24 hours of it being on sale, beating the 600,000 device record set by the iPhone 4, despite the iPhone 4S failing to impress some critics at the announcement due to their expectations of an "iPhone 5" with rumored drastic changes compared to the iPhone 4 such as a new case design and larger screen. Along with the iPhone 4S Apple also released iOS 5 and iCloud, untethering iOS devices from Macintosh or Windows PCs for device activation, backup, and synchronization, along with additional new and improved features. There are about 35 percent of Americans that have some sort of smartphone. This shows that the market is spreading fast and there are also more capabilities for smartphones because of this spread. Smartphones are also mainly valuable based on the operating system. For example, the iPhone runs on the iOS and other devices run different operating systems which makes the functionality of these systems different.

1.2.6. Android
Android is a Linux-based operating system for mobile devices such as smartphones and tablet computers. It is developed by the Open Handset Alliance led by Google. Google purchased the initial developer of the software, Android Inc., in 2005. The unveiling of the Android distribution in 2007 was announced with the founding of the Open Handset Alliance, a consortium of 86 hardware, software, and telecommunication companies devoted to advancing open standards for mobile devices. Google releases the Android code as open-source, under the Apache License. The Android Open Source Project (AOSP) is tasked with the maintenance and further development of Android. Android has a large community of developers writing applications ("apps") that extend the functionality of the devices. Developers write primarily in a customized version of Java. Apps can be downloaded from third-party sites or through online stores such as Google Play (formerly Android Market), the app store run by Google. As of February 2012 there were more than 450,000 apps available for Android, and the estimated number of applications downloaded from the Android Market as of December 2011 exceeded 10 billion. Android was listed as the best-selling smartphone platform worldwide in Q4 2010 by Canalys with over 300 million Android devices in use by February 2012. According to Google's Andy Rubin, as of February 2012 there are over 850,000 Android devices activated every day. Galaxy Nexus, the latest "Google phone"

The Android operating system for smartphones was released in 2008. Android is an open-source platform backed by Google, along with major hardware and software developers (such as Intel, HTC, ARM, Motorola and Samsung, to name a few), that form the Open Handset Alliance. The first phone to use Android was the HTC Dream, branded for distribution by T-Mobile as the G1. The software suite included on the phone consists of integration with Google's proprietary applications, such as Maps, Calendar, and Gmail, and a full HTML web browser. Android supports the execution of native applications and a preemptive multitasking capability (in the form of services). Third-party apps are available via Google Play (released October 2008), including both free and paid apps. In January 2010, Google launched the Nexus One smartphone using its Android OS. Although Android has multi-touch abilities, Google initially removed that feature from the Nexus One, but it was added through a firmware update on February 2, 2010. Concerning the Xperia Play smartphone, an analyst at CCS Insight said in March 2011 that "Console wars are moving to the mobile platform". In the same month, the HTC EVO 3D was announced by HTC Corporation, which can produce 3D effects with no need for special glasses (autostereoscopy). The HTC EVO 3D was officially released on June 24, 2011.

1.2.7. Bada
The Bada operating system for smartphones was announced by Samsung on 10 November 2009. The first Bada-based phone was the Samsung Wave S8500, released on June 1, 2010, which sold one million handsets in its first 4 weeks on the market. Samsung shipped 3.5 million phones running Bada in Q1 of 2011. This rose to 4.5 million phones in Q2 of 2011

Chapter II: Company Profile

2.1. Market Share

Samsung became the biggest smartphone vendor in the world during the third quarter, and Android's market share has surpassed 50 percent for the first time, market research company Gartner said on Tuesday as it reported on phone sales to end-users. Worldwide smartphone sales totalled 115 million units in the third quarter of 2011, up 42 percent from the third quarter of 2010. However, smartphone sales slowed compared to the second quarter, a consequence of the economic situation and of consumers holding out for new models, including the iPhone 4S, according to Roberta Cozza, principal analyst at Gartner. Android and Samsung were the big winners among smartphone operating systems and vendors, respectively. Samsung became the worldwide number one for the first time, selling 24 million smartphones, three times as many as it sold during the third quarter last year. Samsung's support for Android, and the availability of a wide variety of lowcost smartphones running the OS, helped Android grab a 52.5 percent share of the market: 60.5 million smartphones based on the various versions of the OS were sold, according to Cozza. Worldwide, Nokia is still the second biggest smartphone vendor and Symbian the second most popular smartphone OS. Consumers bought 19.5 million Symbian-based smartphones, giving the OS a 17 percent market share.

Smartphones based on Symbian are still popular in Eastern Europe and the Middle East. Nokia's first smartphone running Microsoft's Windows Phone OS, the Lumia 800, has gone on sale in Germany, and will go on sale France, Italy, the Netherlands, Spain and the UK later this month. Microsoft reached a new low during the third quarter as its operating system software now only has a 1.5 percent share of the smartphone market. To compete with the Google camp and Apple, Nokia needs to expand its product portfolio and work with Microsoft on more ways to differentiate from the competition, according to Cozza. At the same time, Microsoft needs to add support for hardware features like LTE (Long-Term Evolution), which is becoming increasingly important. "We don't expect to see a major impact on sales until the second half of 2012," said Cozza. Apple sold about 17 million iPhones in the third quarter, an annual increase of 21 percent, but down nearly 3 million units from the second quarter of 2011, perhaps because potential buyers were waiting for the launch of the iPhone 4S, which came in the fourth quarter. That makes iOS still the third most popular OS, with a 15 percent market share, and Apple the third biggest smartphone vendor. Now that the iPhone 4S has been released and is doing well, Cozza expects Apple to bounce back during the last three months of 2011. With the iPhone 4S and the lower pricing of older iPhone models, Apple is a formidable competitor, according to Cozza. During the fourth quarter, the battle between the Android camp and Apple will be especially cutthroat in the U.S. HTC won the top spot during the third quarter, but Apple in second place and Samsung in third place are just behind, Cozza said. Microsoft wasn't the only OS vendor heading downward: Research In Motion (RIM) recorded new market share lows in both the U.S. and worldwide, at 10 percent and 11 percent, respectively. It sold 12.7 million units, enough to make RIM the fourth-largest smartphone maker, and BlackBerry OS the fourth largest OS, according to Gartner's data. HTC may the biggest smartphone vendor in the U.S, but the company is only the fifth-largest vendor worldwide. It sold about 12 million smartphones.

Beyond smartphones, worldwide sales of all types of phones totaled 440.5 million units in the third quarter, up 5.6 percent from the same period last year. The five biggest vendors are Nokia, Samsung, LG Electronics, Apple and ZTE.

2.2. Samsung Telecommunications

Samsung Telecommunications is one of five business units within Samsung Electronics, belonging to the Samsung Group, and consists of the Mobile Communications Division, Telecommunication Systems Division, Computer Division, MP3 Business Team, Mobile Solution Centre and Telecommunication R&D Centre. Telecommunication Business produces a full spectrum of products from mobiles and other mobile devices such as MP3 players and laptop computers to telecommunication network infrastructure. Headquarters is located in Suwon, South Korea. In 2007 Samsung Telecommunication Business reported over 40% growth and became the second largest mobile device manufacturer in the world. Its market share was 14% in Q4 2007, growing up from 11.3% in Q4 2006. At the end of November 2011, Samsung sold more than 300 million mobile devices and set still in second after Nokia with 300.6 million mobile devices sold in the first three quarter of 2011

2.3. Nokia
Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki. Nokia manufactures mobile electronic devices, mostly mobile telephones and other devices related to communications, and in converging Internet and communications industries, with 130,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of over 38 billion and operating loss of 1 billion as of 2011. It was the world's largest manufacturer of mobile phones in 2011, with global device market share of 23% in the second quarter. Nokia produces mobile devices for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet services such as applications, games, music, maps, media and messaging through its Ovi platform. Nokia's joint venture with Siemens, Nokia Siemens Networks produces telecommunications network equipment, solutions and services. Nokia also provides free-of-charge digital map information and navigation services through its wholly owned subsidiary Navteq. Nokia is a public limited-liability company listed on the Helsinki, Frankfurt, and New York stock exchanges, and plays a very large role in the economy of Finland, accounting for about a third of the market capitalization of the Helsinki Stock Exchange in 2007. The Nokia brand, valued at $25 billion, is listed as the 14th most valuable global brand in the Interbrand/BusinessWeek Best Global Brands list of 2011. It is the 14th ranked brand corporation in Europe (as of 2011), the 8th most admirable Network and Other Communications Equipment company worldwide in Fortune's World's Most Admired Companies list of 2011, and the world's 143th largest company as measured by revenue in Fortune Global 500 list of 2011. In July 2010, Nokia reported a drop in profits by 40%, which turned into an operating loss of 487 million in Q2 2011. In the global smartphone rivalry, Nokia held the 3rd place in 2Q2011, trailing behind Samsung and Apple. On 11 February 2011 Nokia announced a partnership with Microsoft; all Nokia smartphones introduced since then were to run under Microsoft's Windows Phone (WP) operating system. On 26 October 2011 Nokia unveiled its first Windows Phone handsets, the WP7.5 Lumia 710 and 800.

2.4. BlackBerry
BlackBerry is a line of mobile email and smartphone devices developed and designed by Canadian company Research In Motion (RIM) since 1999. BlackBerry devices are smartphones, designed to function as personal digital assistants, portable media players, internet browsers, gaming devices, and much more. They are primarily known for their ability to send and receive (push) email and instant messages while maintaining a high level of security through on-device message encryption. BlackBerry devices support a large variety of instant messaging features, including BlackBerry Messenger. BlackBerry accounts for 3% of mobile device sales worldwide in 2011, making its manufacturer RIM the sixth most popular device maker (25% of mobile device sales are smartphones). The consumer BlackBerry Internet Service is available in 91 countries worldwide on over 500 mobile service operators using various mobile technologies. As of October 2011, there were seventy million subscribers worldwide to BlackBerry. At present the Caribbean and Latin America, have the highest penetrations of BlackBerry smartphones worldwide with up to about 45 per cent in the region having a RIM device. Modern GSM-based BlackBerry handhelds incorporate an ARM 7, 9 or ARM 11 processor, while older BlackBerry 950 and 957 handhelds used Intel 80386 processors. The latest BlackBerry models called "Torch" (Torch 9850/9860, Torch 9810, and Bold 9900/9930) have a 1.2 GHz MSM8255 Snapdragon Processor, 768 MB system memory), and 8 GB of on-board storage. All BlackBerrys after OS 5 support up to 32 GB microSD cards.

2.5. Highest Selling Smartphones by Samsung

Samsung Wave S5253

Price 5,190 OS Bada

Samsung Galaxy Ace

Price 12,000 OS Google Android 2.2 (Upgradeable to 2.3)

Samsung Omnia W
Price 14,100 OS Windows (7.5 Mango)

Samsung Galaxy R
Price 22,739 OS Google Android 2.2 (Upgradeable to 4)

Samsung Galaxy Note

Price 31,500 OS Google Android 4.0


3.1 Scope Of The Project:

i. ii. A detailed study of the smart phone market. A brief study about Samsung Telecommunications, Nokia & Blackberry.

iii. Understanding the customer profile for the Samsung Smartphones. iv. Understanding and analysing the reasons of success of Samsung Telecommunications in the smartphone industry.

3.2 Objectives Of The Project:

a) To explore the reasons of the success of the Samsung Telecommunications. b) To evaluate the level of satisfaction or dissatisfaction among the customers of Samsung Smartphones & the reasons for the same. In order to achieve the above stated objectives the researcher found it necessary to gather information pertaining to the following: i. ii. iii. Indian smart phone industry, Samsung telecommunications and Its rivals.

3.3 What is Research?

Research is the systematic investigation into existing or new knowledge. It is used to establish or confirm facts, reaffirm the results of previous work, solve new or existing problems, support theorems, or develop new theories. A research project may also be an expansion on past work in the field. In order to test the validity of instruments, procedures, or experiments, research may replicate elements of prior projects, or the project as a whole. The primary purposes of basic research (as opposed to applied research) are documentation, discovery, interpretation, or the research and development of methods and systems for the advancement of human knowledge. Approaches to research depend on epistemologies, which vary considerably both within and between humanities and sciences.

There are several forms of research: scientific, humanities, artistic, economic, social, business, etc.

A broad definition of research is given by Martin Shuttleworth - "In the broadest sense of the word, the definition of research includes any gathering of data, information and facts for the advancement of knowledge."

3.4 What is Research Methodology?

The system of collecting data for research projects is known as research methodology. The data may be collected for either theoretical or practical research for example management research may be strategically conceptualized along with operational planning methods and change management. Some important factors in research methodology include validity of research data, Ethics and the reliability of measures most of your work is finished by the time you finish the analysis of your data. Formulating of research questions along with sampling weather probable or non-probable is followed by measurement that includes surveys and scaling. This is followed by research design, which may be either experimental or quasiexperimental. The last two stages are data analysis and finally writing the research paper, which is organised carefully into graphs and tables so that only important relevant data is shown.

3.4.1 Types of Research Methods

Qualitative Quantitaive Mixed Critical and action oriented

3.5 What is Data collection?

Data collection depends on the research design (quantitative or qualitative design). Tutors India helps in a survey tool validation and also online and face to face data collection process. We help you to conduct surveys [in person Interviews: Formal to informal; structured to unstructured; focus group discussion, observations, self-administered questionnaire, diaries, citizen report cards, Delphi techniques, expert judgement, online surveys, secondary sources such as journals, newspaper articles, annual reports, government sources such as census, budgets, policies, procedures, etc.

The preparation of a sucessful dissertation involves conducting effective research, analysing data and results presentation all which require a high level of statistcal expertise. We at tutorsindia provide solution from formulating methodology to the results presentation. You can approach statswork with any or all of the following steps:

Framing your Research Methodology Study design Sample size calculation and justification Development of questionnaire Statistical techniques

3.6 What is Qualitative Analysis?

Understanding some aspects of social life and its methods through text rather than numbers, as data for analysis. Although there are criticism for such methodology, you need such methdology that the survey can't answer very well.

Some common criticism include:

Findings lack rigour Small sample size Not necessarily representative of the broader population

Common Qualitative research methodology include

Focus Group discussion Interview techniques

3.7 Research Method:

For this particular study, the method of acquiring information from the customer needed to be both easy to use and understand. Therefore the researcher decided to use the written survey method. Under this method, the information was collected from the customers using a research instrument called a Questionnaire (which was prepared by the researcher himself). This questionnaire was a structured questionnaire, which had definite, concrete and predetermined questions. These questions were presented with exactly the same wording and in the same order to all the respondents. The questionnaire consisted of both closed ended & open ended questions.

3.8 What is a Questionnaire?

A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents. Although they are often designed for statistical analysis of the responses, this is not always the case. The questionnaire was invented by Sir Francis Galton. Questionnaires have advantages over some other types of surveys in that they are cheap, do not require as much effort from the questioner as verbal or telephone surveys, and often have standardized answers that make it simple to compile data. However, such standardized answers may frustrate users. Questionnaires are also sharply limited by the fact that respondents must be able to read the questions and respond to them. Thus, for some demographic groups conducting a survey by questionnaire may not be practical.

As a type of survey, questionnaires also have many of the same problems relating to question construction and wording that exist in other types of opinion polls.

3.8.1 Question types

Usually, a questionnaire consists of a number of questions that the respondent has to answer in a set format. A distinction is made between open-ended and closed-ended questions. An open-ended question asks the respondent to formulate his own answer, whereas a closed-ended question has the respondent pick an answer from a given number of options. The response options for a closed-ended question should be exhaustive and mutually exclusive. Four types of response scales for closed-ended questions are distinguished:

Dichotomous, where the respondent has two options Nominal-polytomous, where the respondent has more than two unordered options Ordinal-polytomous, where the respondent has more than two ordered options (Bounded)Continuous, where the respondent is presented with a continuous scale

A respondent's answer to an open-ended question is coded into a response scale afterwards. An example of an open-ended question is a question where the testee has to complete a sentence (sentence completion item).

3.9 Data Source

The research makes use of both Primary & Secondary Data. a. Primary Data: The customer survey was based on the primary data which was collected by the researcher through one to one interaction with the customers, using the questionnaire.
b. Secondary Data: use of secondary data was also made in the research.

The purpose was to gather information as to who is a customer, what is customer satisfaction, information pertaining to four-wheelers market, company profile & research papers on customer satisfaction. This secondary data was collected from various websites, Magazines & broachers, management books and articles.

3.10 What is Research Population?

A research population is generally a large collection of individuals or objects that is the main focus of a scientific query. It is for the benefit of the population that researches are done. However, due to the large sizes of populations, researchers often cannot test every individual in the population because it is too expensive and time-consuming. This is the reason why researchers rely on sampling techniques. A research population is also known as a well-defined collection of individuals or objects known to have similar characteristics. All individuals or objects within a certain population usually have a common, binding characteristic or trait. Usually, the description of the population and the common binding characteristic of its members are the same. "Government officials" is a welldefined group of individuals which can be considered as a population and all the members of this population are indeed officials of the government.

3.10.1Relationship of sample and population in research

A sample is simply a subset of the population. The concept of sample arises from the inability of the researchers to test all the individuals in a given population. The sample must be representative of the population from which it was drawn and it must have good size to warrant statistical analysis. The main function of the sample is to allow the researchers to conduct the study to individuals from the population so that the results of their study can be used to derive conclusions that will apply to the entire population. It is much like a give-and-take process. The population gives the sample, and then it takes conclusions from the results obtained from the sample.

3.10.2 Types of population in research

TARGET POPULATION Target population refers to the ENTIRE group of individuals or objects to which researchers are interested in generalizing the conclusions. The target population usually has varying characteristics and it is also known as the theoretical population.

ACCESSIBLE POPULATION The accessible population is the population in research to which the researchers can apply their conclusions. This population is a subset of the target population and is also known as the study population. It is from the accessible population that researchers draw their samples.

3.11 Target population & Sampling plan:

The target population consisted of all the existing customers of smartphones (any make) and the research area was Lucknow.

3.12 Target Areas:

In order to conduct the survey and meet the targeted audience the researcher visited various places. These places included: 1) Major cell phone shops, 2) Major cell phone review website, 3) College Campus, 4) Social networking websites.

Chapter IV Suggestions & Findings

4.1 Major reasons for the success of Samsung mobile are:-

Its design concepts are impeccable

Just like Apple, Samsung knows how to create a clean gadget and its gadgets have some of the best designs in the market. The Galaxy Tab 8.9/10.1 tablets for example, come with a prominent display and slick footprint. Its high-end smartphone, the Galaxy SII offers a neat design and also an excellent SuperAMOLED display that rivals even the IPS display of the iPhone 4. Consumer appreciates quality and many are turning to latest Samsungs products.

It has a strong brand

An essential element of Apples success over the decades has been its strong brand. Consumers everywhere trust a manufacturer that offers high quality products and services with each passing years. Samsung also has a strong brand reputation in consumer electronic industry, from refrigerator to TV to air conditioning to smartphone. Many loyal consumers purchase a host of Samsung electronic products for most of their needs. Samsung products are well-received for decades and the trust helps Samsung in selling smartphone and tablets.

Better features
When we compare mobile devices released by both companies, it is rather tough to find things that make the iPhone stands out. Samsungs latest devices, the Galaxy S2 offers a huge 4.3 display, faster processor and 4G connectivity, while the Galaxy Tab 10.1 also has bigger display, HSPA+ connectivity and built-in social features. On almost all fronts, Samsung offers more capable devices at better pricing.

Bigger display
As noted previously, Samsung devices offer more screen area. The Samsung Galaxy SII has 4.3 display while the iPhone 4 has 3.5 display. On the other hand, the Galaxy Tab 10.1 has 10.1 display, which is slightly bigger than iPad 2s 9.7 display. The difference may be insignificant but the extra real estate can make gaming, web browsing and movie playback better. It is speculated that the iPad 3 will offer a bigger display, however, for now; Samsung offers a more capable tablet and bigger screen than the iPad 2 at lower price.

Android is gaining converts

Although the iOS is a better mobile platform than the Android, it is still debatable whether it justifies the significantly higher prices. Whats more, Googles OS is the most commonly used in the mobile industry and it will continue to be so. Android will significantly dominate the mobile marketplace, just like Microsoft Windows in the computing market. Samsung knows that and it is capitalizing on that prediction

It focuses on consumers
Some manufacturers in mobile space, like Nokia and Sony Ericsson are trying to do a little bit too much. They seek to appeal both the general consumers and the enterprise and in the process they cant maintain or achieve a strong presence on both areas. Apple and Samsung appeal mainly to consumers, but they still accommodate corporate customers if they want to join the fun. Samsung products including its home appliances and mobile gadgets are focused on consumers, which makes it a more formidable opponent to Apple.

More options
Apple has been panned repeatedly by critics due to its reluctance in introducing more devices, which gives users very limited options. Samsung on the other hand, tend to flood the smartphone market. From the lowly Galaxy Mini to the very powerful Galaxy SII, Samsungs Android devices can easily reach many market segments. It is also rumored that Samsung will release seven more Android phones. Samsung is ostensibly aware that by offering a wide range of phones and tablets, price-conscious customers can have more options. Should Apple release a cheaper 3 phone or 7 tablet?

Better consumer awareness

When the manufacturers began to release its early Android devices, there was very little awareness of their products. It appeared that all the rage was around Apples products and competitors were left out in the cold. However, by copying some of Apple concepts and providing things that consumers want, Samsung devices are gaining fame gradually in many parts of the world. Thats a bad news for Apple. Cupertino seems to cling on the assumption that its design appeal will always enthrall the consumers, but Apple might find it hard to leverage on that advantage for too long.

Nokias outdated operating OS

Nokias Operating System, Symbian operating system virtually became obsolete with the launch of Android. Symbian OS didnt have even a fraction of applications available on the Android market. This led to a major downfall in the sales of the previous market leader Nokia. Samsung immediately cashed on this opportunity and introduced a variety of handsets in all price ranges.

Blackberry Messenger Controversy:In 2002, a Canadian company Research in Motion (RIM) released a smartphone BlackBerry, which supported push e-mail, mobile telephone, text messaging, internet faxing, web browsing and other wireless information services as well as a multi-touch interface. One of the most significant features of this smartphone was its extreme security in messaging through advanced encryption techniques. This extreme security implemented by BlackBerry services is now in news for risking national security in some of its fastest growing markets like UAE, Saudi Arabia and India. UAE, Saudi Arabia, India and Pakistan have all voiced similar concerns over wanting to be able to monitor Blackberrys encrypted text messaging for national security reasons. Western critics have been hammering these countries for infringing citizens rights.

With Blackberry being regularly in controversies, the sale chart took a major blow. As an immediate corrective method, Blackberry slashed their prices. With Blackberry prices being cut down by a major margin, Blackberry no longer had the image of being a premium smartphone maker. This meant that people would now consider another brands in the high end smartphone market. Samsung was one of the first brands to realize this opportunity and cashed it in with its handsets like Galaxy S, SII, etc.

Pricing Strategy:Samsung always made sure their handsets were not overpriced and the competitors could not offer a cheaper better alternative. This was one of the major reasons for success of Samsung Mobile.

Focus on the Youth:Samsung mobiles always focused on the youths requirements while adding features to its cellphone. They launched the Corby series specifically for the young college going generation. They realized the potential customers in the young generation of a country.


1. Entrance of new global players:With the entrance of new global players like HTC, Apple, Dell, Acer, etc, Samsung faces an entirely new nature of threat. These brands have a reputation of specializing in portable gadgets like laptops, cellphones, etc. whereas Samsung has an image of being a manufacturer of home appliances. It brings down the brand appeal of Samsung and might make the consumers think of considering the alternatives available.

2. Battery Life:One of the major reasons of dissatisfaction among the owners of Samsung smartphones was the extremely poor battery life. A few people even switched to different companies due to the extremely poor battery back-up.

3. Unexciting Design:Maximum composition of the interviewed lot complained about the plain, monotonous and unexciting design of the handsets. Although they had no issues with the fit & finish or quality of the product, they did complain about how almost all their handsets looked extremely alike. They also said that this reduced the appeal of the high priced handsets as they looked like their cheaper siblings.

4. Same Product Name:As Samsung uses only 3 names, Galaxy, Omnia and Wave, it makes distinguishing their products from each other a very a daunting task. A lot of people were unaware of the various handsets Samsung had to offer as they Galaxy alone has over 10 models. Although Samsung has a huge product range, consumers find it very hard to distinguish a handset from another. This is a huge disadvantage as consumers end up complaining about lack of variety in handsets.

5. No consumer focused handset:Samsung has no handset which is focused on a specific lot of consumer. For example, Acer launched a limited edition Ferrari handset which sported a huge Ferrari logo. Sony Ericsson, HTC, Nokia, Blackberry introduced their handsets in a wide range of colors and textures. This lured a big chunk of female consumers. The fact that most of the handsets by Samsung are available in black & white is eating away a major chunk of their potential sales figure.

6. Faulty OS:One of the major reasons for the success of Samsung mobiles was that their handsets supported Googles Android operating system. Although that is a cause of concern as well. As the operating system is extremely new, it still has a lot of flaws. It is a normal thing for the phone to stop responding, crash and get infected by virus. Making their operating system crash proof like BlackBerry OS or iOS is very important for their survival.

7. Average Audio Quality:Samsungs handsets come bundled with headphones which the consumers found extremely average and not better than what the competition had to offer. HTC paired up with Beats Audio, Sony Ericsson drew music components from Sonys Audio division, Nokia paired up with Sennheiser.

4.3Findings: Gender Composition

60% of the target populations interviewed was male, and 40% were female.


life was a cause of dissatisfaction with almost every








manufactured by other companies could easily detect a WLAN in a Wi-Fi hotspot, their Samsung handset often failed to even trace a WLAN network.


were also very dissatisfied because of the number of

times their cellphone used to crash or stop responding.

Age Composition

The composition of the population was as follows > 18 4% 18-21 23% 22-25 24% 26-30 24% 31-40 18% 41-50 4% < 50 3%

Owners were found their handset to be a very good value for money package.
Brand owned

Smartphone owned by the interviewed population was as follows Samsung 28% BlackBerry 22% Nokia 24% HTC 4% Sony Ericsson 10% LG 6% Apple 6%

Ease of use of their smart phone

The Population was asked to rate their ease to use their smart phone on a scale of 1 to 10, 1 being extremely low and 10 being extremely high. The composition is as follows 1. 0% 2. 3% 3. 6% 4. 10% 5. 18% 6. 13% 7. 22% 8. 13% 9. 8% 10. 7%

What all purposes does your smart phone serve?

The composition was as follows Texting 22% Reading E-Mail 3% Specific Information Search 6% Voice Calls 20% Weather Forecasts 1% Maps / GPS 2% Social Networking 22% Taking Pictures 8% Reading E-Books 3%

Those who owned a smartphone by any other company usually

didnt go for Samsung for its plain looks.


level of unawareness regarding the huge product line

among the consumers was very high.

Satisfaction with music quality

The users of Samsung Smartphone rated the music quality of their smartphone as follows Extremely Poor 14% Poor 18% Satisfactory 40% Good16% Extremely Good 12%


owners of the high end handsets did complain about the

overall poor bundle of accessories provided in the box. One out of every 5 person interviewed owned a Samsung handset.


was a noticeable level of dissatisfaction among the

owners with the camera quality of their handsets.

Level of satisfaction

When users of Samsung Smartphones were asked if they were overall satisfied with their smartphone, 73% said yes they were and 23% said they were not.

Owners who were extremely dissatisfied with their handsets

were generally the owners of the entry level smart phones.

3 out of every 8 people interviewed preferred Blackberry OS

over Googles Android OS due to Androids low responsiveness.

1 out of 10 didnt acknowledge Samsung as a brand desirable

enough, especially when compared to HTC, Acer, Apple, etc.

Although almost every owner had a few complains about their

handsets, almost no one regretted their decision of purchasing Samsung Smartphone.

Chapter V: Conclusions


Samsung has successfully cashed in every opportunity available.

As Samsung was flexible to the changing trends in the market and its ability to react quickly made it possible for the manufacturer to be one of the early adopters of Android and acquire a major chunk of market.

Samsung cleverly bagged in every opportunity its competitors missed or they themselves gave to Samsung.

Samsung quickly took advantage of Nokias(the previous market leader) rigid policy towards leaving Symbian OS and adopting another OS.

Samsung timely recognized the potential of growth in Googles Android OS which is one of the major reasons of its success.

Samsung also took advantage of the controversy Blackberry was dragged into and established itself as one of the major players of the high-end market.

Samsung now has a huge lot of loyal consumers who would not even consider a BlackBerry, Nokia or Apple as an alternative to their existing handset.

Samsung needs to continuously innovate their product as that is their key to market domination.

Samsung aggressive pricing strategy has been one of the major reasons for their success.

Samsungs separate brand ambassador, Bollywood actor, Aamir Khan for its mobile division is a step taken by Samsung towards making it clear that Samsung mobile and home appliance division are separate yet owned by the same house.


Samsung needs to pay attention to the aesthetic front of their handsets as they are losing a lot of consumers only because of the dull, monotonous looks of their handsets.

Samsung should enter into a joint venture with any already established, reputed audio enhancement manufacturing company like Skullcandy or Panasonic as they are already very reputed but have not entered cellphone market. This would lead to mutual benefit and also make the media front of Samsung a strong point.

Samsung needs to pay attention to its camera quality as for some consumers their handset is their only camera. A poor camera could result in Samsung losing its potential consumer to Sony or Apple.

Samsung immediately needs to solve its low battery back -up issue as there was a high level of dissatisfaction among the consumers on this ground.

Samsung needs to make sure that their Wi-Fi components are at par with their competitors components.

Samsung should collaborate with Google and try and eliminate all the flaws and make the tweaked update available to its existing consumers free of cost.

Samsung needs to provide some kind of loyalty rewards to their existing consumers who while upgrading their handset stick to Samsung like exchange bonus, etc. so that they can retain their loyal consumers.

Samsung needs to introduce their new cellphone with new names like HTC or Acer. Too many handsets with the name of Galaxy confuse the consumers.

Samsung should bundle up better accessories with their handsets like Bluetooth handsets, Carrying case or leather cover, etc.

Samsung needs to pay attention to the overall quality and performance of their entry level handsets. Because if the consumers are not satisfied with their current handsets, when they upgrade they would probably choose products of other companies.

Samsung needs to re-establish its brand name as some people still consider it to be a company which manufactures home appliances and not as a company which manufactures high end, technologically advanced handsets.



1. What is your gender? Male Female

2. What is your age? 18-21 22-25 26-30 31-40 41-50

3. What is the highest level of education you have completed? High school/GED Some college 2-year college degree 4-year college degree Masters degree

4. What is your current primary occupation?

5. What is your major or field of study?_____________

6. Do you use or own a smartphone as your primary mobile phone? Yes No

7. What brand of smartphone do you use? (select your primary mobile phone if you have more than one)

BlackBerry OS iOS Android OS Windows OS Palm OS

8. EXCLUDING VOICE CALLS, how often do you use your smartphone in these situations? Often Sometimes Seldom Never Idle time at work or school (during breaks, lunch, boring meetings/classes, etc.) Riding the bus, train, or in car as passenger (commute) Waiting in line (examples: coffee shop, grocery store, for movie to start, picking up kids, etc.) In bed when you wake up (weekend leisure time. before you get out of bed for work, etc.) In bed before you go to sleep For school related tasks For work related tasks In the bathroom While exercising (running, cycling, skiing, at the gym) While you are driving, waiting for light to turn green (not moving) While you are driving (wheels moving)

9. Under what other scenarios do you commonly use your smartphone? (Please list, one per line)_____________

10. Multitasking: EXCLUDING VOICE CALLS, how often do you use your smartphone while simultaneously doing these activities? Often Sometimes Seldom Never Listening to music Walking Watching TV Shopping Using the toilet Playing computer games Playing sports, exercising While talking on the phone (i.e., using apps, advanced features)

11. Under what other situations do you use your smartphone and multitask? _____________

12. What make is your cell phone? Samsung LG HTC Apple Dell Sony Ericsson Nokia

13. How often are you consuming different types of information on your smartphone? Often Sometimes Seldom Never Text messaging (SMS) Reading e-mail Searching for specific information Talking on the phone Viewing content on social networks Weather forecasts Maps, GPS Communicating with friends on social networks News Listening to music Chatting (AIM, GoogleTalk, Skype Chat, etc.) Solo video games Watching video (ex. video podcasts, Youtube, etc.) Listening to audio podcasts Video games across networks with multiple players Reading books (ex. Kindle Reader app; B&N Reader app, etc.)

14. How often do you create different types of content on your smartphone? Often Sometimes Seldom Never Text messaging (SMS) Writing or responding to e-mail Taking photos Maps/GPS Recording calendar events Updating Facebook status Taking video

Tweeting Audio recording, creating podcasts

15. Are there other types of content that you create using your smartphone not listed in the above question? _____________ 16. How do you consume news on a smartphone? Often Sometimes Seldom Never Read articles on individual news sites (ex., Skim news articles and content from multiple sources View news at Google News, Yahoo News, etc. (multi-source news aggregators) Search for news Use sources like Twitter and Facebook to find news content Receive news alerts on your smartphone View news from friends recommendations sent to you on your smartphone Listen to audio news (podcasts or streaming audio) Search for news using Twitter Watch news video

17. What are your preferences for consuming news on your smartphone?

Favorite Like Neutral Dislike Hate News in the form of text News in the form of photos News in the form of video News in the form of audio

18. Are there additional ways you prefer to consume news on your smartphone that were not mentioned in the above question? _____________

19. What types of news do you typically read, listen to, view, or seek out on your smartphone? Often Sometimes Seldom Never Weather Breaking news National news International news Local or state news Sports news Business/technology news Personalized news Specific columnists or bloggers Investigative reports

20. Are there additional types of news you seek out on your smartphone that were not mentioned in the above question? _____________

21. Do you prefer to go to individual news sites using your smartphones Web browser or use a news-specific app? News sites Apps No preference

22. If you have a preference from the above question, please explain. _____________

23. What percentage of a news article do you typically read on your smartphone? Headline only 3 paragraphs or less 25% of article 50% of article 100% of article

24. How long do you typically spend listening to an audio news story on your smartphone? 30 seconds or less 31-59 seconds 1:001:30 1:312:00 2:013:00 More than 3:00 No response

25. How much time do you typically spend watching a news video on your smartphone? 30 seconds or less 31-59 seconds 1:001:30 1:312:00 2:013:00 More than 3:00 No


References & guidance for the dissertation topic from the following links and directories:-,_Inc. The Economic Times, 26th August 2010. Mobile (Monthly magazine) December 2011-March 2012 Editions. Digit, October, 2011.