The real battlefront in the smartphone wars seems to be in the operating system sector. Google (NASDAQ: GOOG), Research in Motion (NASDAQ: RIMM), Apple Inc. (NASDAQ: AAPL), Nokia (NYSE: NOK), and Microsoft (NASDAQ: MSFT) are all vying to make their software the platform of choice for both mobile software developers and businesses looking to capitalize on the burgeoning smartphone application and mobile advertising markets.
There is money to be made from and through smartphones and 2010 has seen more activity surrounding the market than ever before. While some of those platform holders like Apple and Research in Motion are focused on conquering both the software and hardware markets of the smartphone business, Google and Microsoft are more interested in getting their smartphones in as many handhelds as possible.
It’s a crowded field too, one filled with opportunity for Android and Windows Phone 7. Motorola (NYSE: MOT), Dell (NASDAQ: DELL), HTC Corporation, Samsung, Sony Ericsson (NYSE: SNE, NASDAQ: ERIC), and others are all vying for the attention of a populace quickly making the transition from feature cellular phones to connected smartphone devices. Now, according to a Reuters report published just this morning, Google is getting one more manufacturer behind the Android operating system. Japanese electronics giant Panasonic Corp. (NYSE: PC) will offer their own smartphone starting in 2011.
The still unnamed line of Panasonic smartphones will initially be available only in Japan but will hit the international market starting in 2012. Panasonic Mobile has largely disappeared from the wider mobile phone market in recent years. The company used to sell a line of second generation GSM phones outside of Japan, but they stopped selling their devices worldwide at the end of 2005, their business crippled by competitor Nokia. Panasonic has, however, maintained a healthy mobile business in their native Japan, controlling the second largest portion of market share and eclipsed only by Sharp Electronics. The quick rise of smartphones, however, has seen Panasonic’s Japanese market share eroded by Samsung and Apple Inc.
Panasonic recognizes that they’re late to the smartphone party. Head of Panasonic Mobile Osamu Waki, at a press conference announcing the company’s entrance to the smartphone market, said, “We misjudged the speed at which smartphones would be taken up in the Japanese market. With the rapid shift to Android, we want to catch up quickly.” Whether or not Panasonic will be able to catch up is another matter entirely.
Apple is the company to beat in the Japanese smartphone market. The iPhone has been a runaway success in the country, a rarity for a non-Japanese device, and the device currently controls a 72% market share according to Tokyo-based MM Research Institute. Given the company’s lack of experience designing smartphones, it will be difficult for them to capture their domestic market, let alone compete in the global market.
It’s doubtful that Panasonic will pose much of a threat to Apple, Research in Motion, Motorola, HTC and others in the American smartphone market when they release their device in 2012. All of the major smartphone manufacturers will have released models more affordable and functional than those currently on the market. The same can be said of Europe. Panasonic’s best chance, however, is to get a foothold against Nokia in the central Asian market. Until they debut their device to the public though, it will be impossible to say whether or not they have a chance. Investors should not expect their offering to have a significant impact at home though.
As of this writing, Anthony Agnello did not own a position in any of the stocks named here.
