Mobile phone industry going through a structural change
As described in the NYT “In Motorola Earnings, Signs of Industry in Change” the mobile industry is going through an industry restructure and the growth experienced in the past is not going to come from the sales of mobile phones. It is not just the downturn affecting the market but it is something more fundamental, mobile phone penetration is high and people do not replace phones every year.
Of course, the growth is possible but it is somewhere else, as Olli-Pekka Kallasvuo (OPK), Nokia’s chief executive, said recently in a conference call with investors to discuss the earnings “Internet-centric phones and mobile services would drive a new generation of growth.” ”This will drive the next wave of industry growth, and innovation will not stand still”.
For example, App store Hits 500 Million Downloads
