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T-Mobile CMO: subsidized pricing hurts wireless competition, undermines hardware value
Could an end to unsubsidized smartphones be on its way for US carriers? If T-Mobile's Chief Marketing Officer Cole Brodman had his way, that familiar on-contract pricing would've gone the way of the Dodo a long time ago. Speaking at this week's GeekWire Summit in Seattle, the Magenta exec vented his frustrations with the industry's current business model, citing his belief that low cost handsets not only distort consumers' perspectives, effectively "[devaluing].. the hardware they are using," but also position wireless market players to compete unevenly. When pressed as to why his own network hadn't effected the change, Brodman referenced the lack of cooperation from other major operators, in addition to a market driven by subscribers' purchase habits. As for the fourth place network's glaring iPhone omission, Brodman seemed nonplussed, highlighting the variety of Android and Windows Phones available on its lineup, while asserting his faith in a multi-OS marketplace. While you keep those toes crossed in the hopes of a subsidy-free mobile future, check out the source below for the full panel interview.
Android still king of the US smartphone hill, Motorola facing a market nosedive
In other obvious news, Android and iOS continue to sit pretty atop the US smartphone market, according to a recent NPD study. The current titans of the mobile industry both saw their pieces of the OS pie increase in Q2 of 2011, putting Andy Rubin's green robot in the lead with 52 percent and Apple at 29 percent. Newly adopted webOS, and Microsoft's WP7 and Windows Mobile all managed to cling to their respective 5 percent shares with no yearly change, leaving only BlackBerry OS to experience an 11 percent decline. But the real meat and potatoes of the report focuses on Google's soon-to-be in-house partner: Motorola. Despite the rosy picture painted by recent acquisition talks, the company appears to be facing tough competition from Android OEM rivals, and the wireless market as a whole. In regard to overall mobile phone share (read: dumbphones, et al.) and smartphone-only, Moto saw a 3 percent year-to-year decline, with its biggest loss coming from Android unit sales -- a 50 percent drop to 22 percent of the market. Will the rosy glow of Mountain View "help inspire new paths to differentiation" for Moto, or are we just looking at a repeat of the "RAZR era?" While you ponder these pressing questions, head past the break to read the full report.
Editorial: Google, Microsoft and the incredible shifting mobile landscape
In two years, we'll mark the thirtieth anniversary of the first commercially available cellphone -- built by Motorola, incidentally. Given this week's big news from Google, and other big events that we can only presume are yet to come, those two years may also prove to be some of the most interesting yet for the mobile industry. One of the more telling things about Google's acquisition announcement on Monday was the response from Motorola's competitors (and Google's partners). Immediately following the news, Samsung, Sony Ericsson, HTC and LG all came out to praise Google's commitment to "defending Android," which presumably also means that they remain committed to using Android. What's more, as Google itself has made explicitly clear recently, it's not just defending Android as any company would defend its own product, but defending it against what it's described as "hostile" and "organized" threat from Apple and Microsoft (and, to a lesser extent, Oracle). That increasingly hostile footing and a further-bolstered Google (assuming the acquisition goes through) also now creates some clearer lines and an entirely new dynamic between the major players in the mobile industry. Google and Microsoft are now taking similar approaches by licensing out their operating system to others while also having a hand in hardware development (by proxy with Nokia in the case of Microsoft). Neither are about to go as completely independent as Apple has, of course, but they both seem to have decided that it's no longer enough to just focus on software and leave manufacturers entirely to their own devices. That leaves RIM and HP who, like Apple, are each trying to go it alone with their own hardware and mobile operating system -- although HP is apparently open to the idea of licensing webOS if it has any takers (an option that seems to be getting less and less likely). The question now is will they succeed by staying out of the fray, or will they be forced to join it and choose sides?
