Apple's $99 iPhone and Palm's New Pre Heat Up the Smartphone Battle

The contest for market leadership among today’s smartphone makers recalls a similar battle years ago in which Sony’s Betamax locked horns with JVC’s VHS system in a quest to become the industry’s standard format for video tape players.

Today’s battle for dominance in the smartphone market, however, involves many smartphone makers and even more competing operating systems. Apple’s latest effort to gain an upperhand is a $99 iPhone with video recording abilities and a battery which, Apple claims, lasts 50% longer than the battery in older models — or up to nine hours.

Also just introduced: Palm’s Pre smartphone, offering an entirely new operating system dubbed "webOS," which has received rave reviews. Other key market players include BlackBerry and Nokia.

Consumers, as usual in these market wars, are the big winners as the lower-priced iPhone shows. But some big questions remain, including whether these increasingly smart devices can eventually substitute for PCs in large numbers, and whether a single standard will emerge from the various operating systems.

At present, no single operating system meets all the needs of consumers, enterprises and developers, say Wharton experts. Over time, the differences in the operating systems may fade as more unified platforms across different browsers and operating systems rise up, in much the same way that successful Internet browsers ultimately became usable across computer operating systems.

One thing seems clear, however: The smartphone market is at a tipping point and is evolving from the realm of a niche product to a game-changing, mass market item. Learn more about what Wharton experts think about where the smartphone phenomena is heading in this article: “As Smartphones Proliferate, Will One Company Emerge as the Clear Market Winner?”

Additional Reading from Knowledge at Wharton

The Net Impact of Netbooks? It Depends on Who Uses Them for What

Comments

New This Week

Want More Women Candidates? Ask Employees for More Referrals

Want More Women Candidates? Ask Employees for More Referrals

August 18, 20264 min read

A Wharton paper found that increasing referral targets prompted employees to look beyond their first choices, bringing more women into the recruitment pipeline.

The AI Boom Is Testing America’s Power Grid
Podcast

The AI Boom Is Testing America’s Power Grid

August 18, 202619 min listen

Serguei Netessine, Wharton’s senior vice dean for innovation and global initiatives, examines AI’s growing electricity demand and the infrastructure needed to support it.

The Way of Excellence: Lead for Sustainable Performance

The Way of Excellence: Lead for Sustainable Performance

August 17, 20265 min read

In this Nano Tool for Leaders, author Brad Stulberg explains why you should stop thinking of excellence as a destination and more as a process of growth.