Unleashing the power of 4G and Open

development to accelerate growth in the

Smartphone industry
Symbian Exposition and Exchange
October 2009
Copyright © 2009 Accenture All Rights Reserved.
Agenda

• Introduction

• Smartphone industry trends

• Opportunities, Risks and Challenges

Copyright © 2009 Accenture All Rights Reserved. 2

The Smartphone industry has started adopting
consumer experience centric bundles which can
deliver simple yet compelling and engaging
experience

User
Control
Service
Bundle
Network(s)

(Infrastructure,
Devices Customer Cloud Processes, Databank
experience & Analytics)

Content /
Services

Source: Accenture POV on customer experience centricity

Copyright © 2009 Accenture All Rights Reserved. 3
 Advancements and trends in Networks, Software and
Hardware will continue to fuel adoption of business
driven by consumer centric experiences

Time
Value Driver

Collaborative Rich UE
4G Open Centric

Verge of 3.75G Convergence

Open
Commoditization 3.5G Centric

3G Multimedia
Semi-Open
Centric
2.5G
Voice and Text
Commoditized Closed
2G Centric

Networks Software Devices Hardware

Copyright © 2009 Accenture All Rights Reserved. 4
As strong bundles appear, the evolution will
lead to increasing connection of bundles with
each other to form federations …
Future evolution of super-bundles

Federations
of
Eco system
‘bundles’ bundles
Devices and Apple
Services
Devices

Video Maps Google

Stocks News
1. Customer
1. Technological experience
attributes
1. Technological 2. Design
attributes 2. Design
3. Technological
2. Design 3. Services attributes

Source: Accenture POV on customer experience centric bundles

Copyright © 2009 Accenture All Rights Reserved. 5
4G will drive the network trends,
creating new business levers for the
Smartphone industry

Manage data speeds

of 50+ mbps

High Data Speed Optimized for better

power management
High Quality of
Service Subscription upgrades
Provide inbuilt video
Maximum Coverage chat and conferencing
features Increase in VAS sales
Seamless mobility
across Radio Provide advanced
Technologies collaboration social Increase in data ARPU
networking for
Secured enterprise users
connection, content
& context
Enable creation and
Lower price for consumption of HD
connectivity content

Key Connectivity Needs Implications of 4G Key Business Drivers

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Collaborative Open will drive the software
development trends, creating new business
levers for the Smartphone industry

Differentiate through
User experience, Form
Feature rich and factor and Innovative
optimized platform features

Creation and delivery Innovative features and

of “wow” user rich user experience
experience Provide and promote
Application Stores to
sell content, Higher sale of Content,
Creation, distribution applications and Applications and Service
& consumption of HD web2.0 services
content, cool
applications & e2e Reduced cost and higher
services quality of software
Manage and leverage
collaborative software
Lower complexity and development
cost of software R&D

Share rewards with

Very high quality the community

Key Connectivity Needs Implications of Key Business Drivers

Collaborative Open
Copyright © 2009 Accenture All Rights Reserved. 7
Different hardware trends will drive delivery of
compelling consumer experience, creating new
business levers for the Smartphone industry
Hype Cycle for Mobile Device Technologies, 2009
Expectations
Wireless Power
Pico Projectors
Bluetooth 3.0

High Performance Cool form factors,

Multitouch
Multicore Application
Processors
Magnetometer design and low-cost
Solar Power Advanced Mobile Browsers personalized styling
NFC

Voice to Text on Software-Defined Radio

Mobile Devices Camera-Based Gesture Recognition Advanced capabilities,
Smartphone Bar Code Reader
features and
Hypervisors
Bluetooth Low-
applications
Energy Wireless Haptics
Technology GPS

Dual Noise Cancellation

AMOLED Device refresh
Dual Mode Phones
Mobile Transphones
MEMs Displays

Photonic Crystal Displays As of July 2009

Technology Peak of Trough of Slope of Plateau of

Trigger Inflated Disillusionment Enlightenment Productivity
Expectations

Time
Years to mainstream adoption:
Less than 2 years 2 to 5 years 5 to 10 years More than 10 years x Obsolete before plateau

Source: Gartner (July 2009)

Hardware Trends Key Business Drivers

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 The new trends will drive growth in the
Smartphone industry contributing 42.3%
of the revenues by 2013
Networks

Subscription upgrades

Increase in VAS sales

Increase in data ARPU

Revenues by new trends will grow at a
CAGR of 18.4% between 2009-2013
Innovative features and rich 250 100
user experience 220.4
Software

Reduced cost and higher 200 80

quality of software 157.8
150 60
Higher sale of Content,
Applications and Service 112.5
100 42.3 40
73.9

50 21.1 20
Cool form factors, design and
low-cost personalized styling
Hardware

8.2
0 1.9 0
Advanced capabilities, features 2010 2011 2012 2013
& applications
Revenues ($bn) New Trends Share (%)
Device refresh Source: Gartner and Accenture Research

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Key recommendations for the
players in Smartphone value chain

• Creation of adaptive software & services which learns and adapts to user Consumer
preferences Centric
• Inbuilt features to collect and factor direct consumer feedback Bundles

• Consider factoring the evolving form factors of Smartphones to MIDs and have a Content,
roadmap to seamlessly migrate into the HD era Apps,
Services

Value Chain
• Develop end-to-end bundling strategy with 4G as the pipe to create and deliver
differentiated services at premium Connectivity

• Key differentiators: User Experience, cost, form factor, device quality

• Consider creation of innovative sales and distribution with 4G operators and gain Device
on possible early mover’s advantage

• Creation of end-to-end platform with HD content, high speed data and effective App Enablers

Platform
Middleware

power management at the device-end Operating System

• Consider identifying and partnering with platform vendors who bring end-to-end Semicon
capability, supports open development and have integrated multi modal radios

10
Conclusions
• 4G and Collaborative Open software development impact all the players in the value
chain
• To stay competitive and have a winning edge the Industry needs to equally focus and
thrive on - Business, Technology and Operational excellence
• Players in the value chain must play on their strengths and aggressively build alliance
with partners who bring complementary capabilities
• New trends will result in …
– New devices delivering rich user experience
– Higher focus on consumer centric bundling / federations
– New business, technology and operational challenges

The journey to high performance in the new era will

be challenging but also more rewarding
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