일반산업

Overview of telecommunication industry affected by smartphone

2010-06-07KIM, Nam-Hoon

목차
요약
Although short-term competitiveness of cellphone makers is expected to be weak, their market share will continue to increase in the long term

They will be able to respond to the market with their competitive capacity as a global
service provider

It may be difficult that cellphone makers expand smartphone market share and maintain ASP of high-specification feature phones due to Nokia’s price competition, Motorola’s possible sacrifice and many potential competitors’ advance into the market
However, in the long term, amid less influence of OS resulting from an increase in general- purpose OS, domestic cellphone makers that can maintain favorable relationships with telecommunications service providers and respond to cellphone demand in a timely manner will be able to gain competitive edge and successfully secure market share of smartphones in the future
Accordingly, based on the high brand recognition, global distribution channels and quantity- based cost competitiveness, domestic cellphone makers will be able to expand market dominance with their competitiveness of price and distribution channels in the smartphone market


only a small minority will benefit from smartphones due to the overall unit price pressure

The telecommunications industry will benefit from expansion of smartphones, but pressure on cellphone components unit price will be higher

Since price competition will be fiercer, an increase in smartphones to be released by cellphone makers will not contribute to sales increase and performance improvement of cellphone component manufacturers
Instead, non-general purpose cellphone component manufacturers which heavily depend on cellphone makers will be highly likely to achieve poor performance. Accordingly, a small minority of manufacturers of cellphone components such as touch panel, LBS related chip set and antenna, electronic components and battery,WiFi antenna, application processor, etc. will benefit


Investment burden and price drop pressure make it difficult for
telecommunications service providers to improve profitability

In the short term, APRU improvement of telecommunications service providers will enable profitability improvement

Despite price drop and the government’s competitiveness-friendly policy, an increase in wireless internet users on smartphone and subsequent improvement of APRU will improve profitability of telecommunications service providers in the short term

However, in the long term, there will be risk factors resulting from lower entry barrier
and unstable supply and demand

Lower entry barrier and increased number of substitute goods like MVNO and mobile
VoIP and competitors will decrease stability in supply and demand, and the value chain dominance will be divided into upstream and downstream and make profitability improvement difficult