After the active distribution of smartphones, cameras, music players (so-called MP3 players), and navigators, these devices are no longer the 1st device. Manufacturers have already installed all of these functions such as GPS, CODEC, and camera lens into smartphones. Most people who have smartphones don’t need to buy additional gadgets for other usage such as taking photos or listening to music.
TomTom and Garmin, the mega manufacturer of the navigator industry, says their numbers are the same or decreasing compared to their previous years. Even though TomTom’ sales rose 3 percent, to $512.4 million, in the third quarter, but the company’s net profit slumped 37 percent on Oct. 20.
The fact is, mobile phones have been providing the those functions. Representatively, some players such as Nokia and SK Telecom have installed navigation programs and maps into their phones. But the function and the size of the LCD are the bottleneck in distributing the service to more users.
Now everything is changing according to the rapid evolution of smartphones with Android and iOS. Smartphone is integrating with all kinds of devices. It is causing other devices to fall as 2nd devices. If these 2nd devices survive from this trend, they might be differentiated from smartphones or directly have a partnership with smartphone manufacturers.
A few months ago, I wanted to buy a small digital camera although I already had a DSLR camera. But I still have not bought a camera because I own a Galaxy S. Following the trend or making niche, it needs to make a strategic decision for 2nd device makers.