Nokia’s hardware was first-rate, but its support for applications was lacking.
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Unlike smartphone market newcomer Apple, Nokia underestimated the importance of software in digital phone era. Its 3G line of phones with experimental designs hadn’t been as successful and popular as Nokia hoped, but the real issue was the company’s Symbian operating system. The company hit 40% market share in 2007, but by then the Finnish giant had already shown signs of problems bubbling under the surface. Nokia retained its grip on the global market for most of the next decade. The company entered the 21st century as the dominant mobile manufacturer, holding 30.6% market share compared to Motorola's 13.3%. Nokia’s annual sales grew from a comfortable $6.5 base to $31 billion in 1988 when it was the clear mobile phone market leader. Nokia’s internal projections forecast about 400,000 unit sales for the follow-up 2100-series phones. The Nokia 1011’s huge success induced the company to sell off its other divisions and focus solely on mobile phones. It has served as a foundation for building new technologies and a gateway for competitors enter the mobile market.Īmong the most prominent newcomers was Nokia, a Finnish company that exploded onto the scene with a GSM-based digital phone. The second of those, GSM, would become the dominant 2G technology, used in over 80% of the world’s phone market share. The technology was pioneered by European countries that created working groups like R21, GSM, and ETSI. The solution was 2G, a technology that represented a shift from competitive to cooperative development. It had become evident by then that 1G simply wasn’t able to deliver low-cost solutions for the masses. The consumer market started to widen in 1990. It would take a few more years for mobile devices to appear in the hands of average consumers. The brand was associated with the very idea of a mobile phone.įirst-generation mobile phones were so expensive they were really only for the wealthy and for corporate executives. Motorola dominated cell phone market share in America. Consumer demand was strong - Motorola had a waiting list of thousands of customers. It supported Motorola’s DynaTAC 8000X, which cost $3,995, had a battery life of 35 minutes, and needed 10 hours to recharge. In 1981 it was launched simultaneously in Denmark, Finland, Norway, and Sweden, becoming the first mobile phone network featuring international roaming.Īmerica’s first 1G network was launched by Ameritech in 1983.
The Nordic Mobile Telephone network soon followed. By then, Nippon Telegraph and Telephone had already blanketed Japan with a nationwide cellular network.
It would take Motorola 10 more years and an additional $100 million in R&D costs to bring the first commercial mobile device, the DynaTAC 8000X, to the phone market.
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“I'm calling you from a cell phone, a real handheld portable cell phone.”Īnd just like that, a new industry was born. Witnesses watched Cooper dial numbers on Motorola’s DynaTAC prototype phone and place a call to Dr. This demonstration happened at the New York Hilton in Manhattan. That’s the day Martin Cooper, a senior engineer at Motorola, called his greatest rival in the telecommunications industry and informed him that he was calling on a mobile phone. The first ever mobile phone call was made on April 3, 1973. Mobile Market Generations: From the Analog Era to the Digital Age In technology, change is the only constant. Leadership in market share of smartphones has changed over the years, and it will change again. Their market positions seem unassailable, but innovative competitors continue to enter the market. Smartphone makers are among the largest, richest, and most influential corporations on the planet. The iPhone and its competitors are now essentially tiny supercomputers that are gradually taking task after task away from the once-dominant PC. The iPhone’s groundbreaking design is omnipresent now, but in 2007 the combination of a touchscreen, modern apps, and a customizable user experience was revolutionary. With subsequent releases, Apple has continued to dominate American smartphone market share. It wasn’t just a mobile phone, but a smartphone. Jobs’s brainchild combined a cellular phone, a high-resolution touchscreen, and a powerful general-purpose computer capable of installing and running apps. There were mobile phones before the iPhone. The first iPhones left Apple stores and entered history on June 29, 2007. That’s the day Apple’s Steve Jobs took the stage at Macworld and announced that the company would release a mobile phone, the iPhone. The smartphone as we know it was born on January 9, 2007.
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