The Mobile World in 2013: Winner Takes All
Naomi is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
When the use of landline phones came into existence, it was huge, but with the inception of the mobile phones in 2001, landline phones are almost going into extinction. A similar case is personal computers. With the number of internet connected mobile devices continually increasing by the day, some speculate the use of personal computers will not compete favorably with the use of mobile devices that are connected to the internet.
According to a report by Daniel Franklin of The Economist:
“Mobile companies received $3.9 billion in venture capital investments in the first half of 2012 -- 46% of all venture capital invested. More funding went into mobile firms in 2011 than in any year since 2001”
This report surely means a lot for every technology company. Just to prove that the use of mobile devices in accessing the internet is gaining more ground, Facebook (NASDAQ: FB) spent almost $1 billion in the acquisition of Instagram, a mobile photo-sharing app. It has invariably, through this acquisition, positioned itself as one of the companies vying to be a winner as far as the mobile world is concerned. Also, there are speculations that with more clients opting for mobile advertisements for their products and services since it is cheaper, Facebook no longer generates much profit from desktop advertising.
Franklin goes further to declare Apple (NASDAQ: AAPL) the winner in the mobile revolution race. Even though there are several versions of tablet devices in the market, coming from various companies, Apple’s iPad accounted for the company’s 50.4% sales in Q3 of 2012. The iPhone on its part accounted for 75% of the company’s profit accrued from the mobile-phone market. It is based on the fact that even in the face of stiff competition, Apple still maintains a huge market share in the tablet market.
Nokia (NYSE: NOK), formerly the biggest cell-phone maker, known for turning its fortunes around and with the possibility of coming back on the mobile phone radar with its launch of Lumia 920, could compete favorably in the mobile world revolution if it pays more attention to making the internet the core of its products’ features. Google is also not being left out because with the pending launch of its product, Google Glass, which is rated as one of the best inventions of 2012, the company will surely make a huge impact in the mobile device market.
Research in Motion (NASDAQ: BBRY) can also have a taste of this mobile world success if it retraces its steps and incorporates more user friendly features on its phones instead of making a device for the corporate personalities only, especially with its high-tech security feature for chats and email messaging.
Yes, with the internet virtually becoming a part of the human existence, it becomes necessary that even as these companies slug it amongst themselves to be the leader in their various industries, every website owner and retailer should, come 2013, as a matter of urgency, make changes to their websites that are in tune with the mobile revolution or face the possibility of their websites becoming obsolete.
Chizy has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Facebook, and Google and has the following options: long JAN 2014 $20.00 calls on Facebook. Motley Fool newsletter services recommend Apple, Facebook, and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!