Mobile Manufacturers need to Change their Business Models
Mobile broadband connectivity has become very popular in the recent past and this has become evident in the huge increase in the bulk of shipments of internet-enabled devices. By the end of 2012, the bulk of internet-enabled devices is expected to become fifty eight million. The projection is that this demand will show rapid increase in the next few years.
Research analysts are predicting that with the latest trend of media players, e-book readers and digital cameras to camcorders becoming net enabled, the business model followed by manufacturers currently need to be changed.
Jeff Orr, a senior analyst at ABI Research, is of the view that the present trend of customers going in for connected PNDs and e-book readers is going to increase steadily and demand for other products will also gradually increase. With this massive increase in devices, the manufacturers will definitely have to change their method of conducting business, both in the way they manufacture and sell their devices.
In case of embedded mobile broadband connectivity, the device is tied to the operator. This is same even if it is in case of dongles and phones where the customer is paying a monthly charge or in case of e- book readers where the customer pays on a per-content basis.
The research conducted by ABI suggests that the present models of businesses are not properly matched with the devices being sold. The pricing done in this manner gives rise to a make-or-break situation for offering content and connectivity, which is definitely not good for the industry.
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