Mobile Device Market Trends in 2008

The objective of this report is to identify the rising trends in the global mobile device market in 2008. The research material in this report is based on ROA Group's strategic research and consulting projects conducted in 2007 on the major mobile operators and handset vendors in Asia (particularly on Korea, Japan and China). In addition, interviews with professionals in the industry, including mobile service providers were used as a reference for carrying out a comprehensive market analysis.

ROA Group projects that in the Korean and Japanese markets, Samsung Electronics, LG Electronics and Sharp continue to be aggressive players in the handset vendor segment. Among the major mobile operators in the advanced markets of Korea and Japan, NTT DoCoMo, KDDI, SK Telecom and KTF will take the lead in the device market of the two countries. Furthermore, ROA Group forecasts that the market trends of Korea and Japan, where the operators push ahead with their globalization strategies, will resemble more and more the general trends in the world market.

ROA Group forecasts that the following trends will emerge as main market trends in 2008.

Based on the above, ROA Group will examine the main trends in the global mobile market of 2008 through the following 5 topics.

1. Intensifying Competition in Mobile OS and Platform Segments - Increasing Influence of Mobile Linux

As of now, the mobile device market is being dominated by Symbian, the exemplary proprietary standard, occupying 70% of the market. However, in 2008 Symbian will face growing market competition due to the rise of Windows Mobile, the second market player, and Mobile Linux, which is an open standard. In particular, the year of 2008 will witness the rapid expansion of Mobile Linux, as the Open Handset Alliance based on Google's Android OS is drawing attention from large handset vendors and mobile operatorsin the world.

2. Expansion of Smartphones

During 2008, Smartphone will strengthen its position in the market by drawing huge attention as a result of intensifying competition among the players, who are trying to secure a more attractive handset line-up. In 2008, smartphones will occupy 22% of the entire mobile market, helping increase web-based services on the mobile network.

3. Maximization of "Emotional Effect" through Sophistication of User Interface

User Interface is not considered as a service platform any longer. Rather, it is adopted as a strategy to differentiate mobile handset and services in order to increase user demands and handset purchase. The idea that User Interface = Culture Code is spreading in the market, and Apple iPhone can be taken as a prime example. Against this backdrop, handset vendors are expected to pursue mergers with UI companies while introducing a variety of new UI technologies, with a view to delivering differentiated OEM UI to the users. The mobile operators will identify the importance of "Unified UI" (technology to offer consistent UI, whether using a wired or wireless connection).

4. Touch Screen Display Rising as Handset Standard

Since the launch of Apple iPhone and LG Electronics Prada Phone, more mobile handsets featuring touch screen are being introduced. The problem related to touch screen input error seems to be addressed before long thanks to the adoption of tactile feedback technology. Tactile feedback technology provides immediate feedback to users with either vibration or colors while typing, which also works as a source of entertainment to the users.

5. Increase in GPS Handsets

As mobile devices have become capable of offering web 2.0-based services with state-of-the-art technologies, "Application Mash-up" on the wireless network, such as instant tracking service utilizing GPS and search engine, will emerge as a new topic. Considering that users want location information via mobile handsets the most, GPS handset has a high possibility to advance and GPS handset-based LBS (Location Based Service) is likely to emerge as the new killer application