Today, Facebook CEO said that they want to create a dial tone for the internet with Whatsapp acquisition. Analysts and market tried to understand the same of Motorola for $3B to Lenovo.
Sometimes headlines make all the news.
Nokia succumbs to Android appeal in low-cost phone battle
Mozilla plans ‘$25 smartphone’ for emerging markets
Apple’s Smartphone Market Share Drops as Samsung’s Edges Up
I found 2 interesting observations in Nokia’s announcement today.
In 2007, Nokia with its Symbian OS had 70% market share in India which was fastest growing market in terms of mobile devices. They designed and built phones locally to meet local market needs and blackberry was close 2nd. Microsoft still commands over 90% market share in desktops. Microsoft made hundreds of billions just by being the underlying operating system. Microsoft started to hit its limit as mobile devices are gaining adoption and it is struggling to be relevant in emerging devices.
Android has a market share of 70% in global mobile device market and now Nokia which is to be acquired by Microsoft is launching android devices for markets like India to compete with Samsung. By signing an agreement with Samsung to commit to Google on Android, the new leader has emerged.
Apple itunes disrupted the business model with an entire ecosystem generating billions. Nokia’s reason to move to Android is Google play. Nokia is modifying android services to use Microsoft apps to stay relevant in emerging market. If Blackberry decides to switch to Android devices, we will have 2 ecosystems. Apple ios with itunes and Android devices with play. Sun had similar success with Java but, GOOG strategy to change the landscape is flawless.
While FB can create a new dial tone, the phone with the dial tone may run on Android.