Analysts with MultiMedia Intelligence see a rise
of new class of mobile devices -- those that are
application-centric and also contain voice functionality.
The evolution of mobile devices to an open platform and the
movement of Internet video into the mainstream are this year's two
macro trends that will have the greatest impact in the future,
according to a report released on Monday by MultiMedia
Intelligence.
This year marked a new transition of mobile devices into open
platforms. Although it's known for being a closed platform when it
comes to allowing third-party applications, Apple's iPhone started
a new dynamic, andGoogle (NSDQ: GOOG)'s Android platform and a
possible Java-based operating system are the next phase, MultiMedia
Intelligence said in the report.
Another important development rounding out the macro trends of
2007 is Motorola (NYSE: MOT)'s recent investment in UIQ, a software
platform based on the Symbian OS. In October, Motorola bought 50%
of Sony Ericsson's stake in UIQ, which is also the platform behind
Sony Ericsson's touch-screen smartphones. This means touch screens
are likely to become a major focus for the phone maker.
"2008 will see a heightened battle for control of the platforms
and business models. Companies like Nokia (NYSE: NOK) and Apple
will pull at the operators, trying to capture data, content and
application revenue for themselves. Open platforms like Android
will drive the mobile network to open up like the Internet," said
Frank Dickson, chief research officer at MultiMedia Intelligence,
in a statement.
MultiMedia Intelligence sees a rise of new class of mobile
devices -- those that are application-centric and also contain
voice functionality. The devices come with Internet browsers, music
players, various messaging capabilities (text and e-mail), and
they're capable of making voice calls. Over the past year, major
phone makers including Nokia, Motorola, Samsung, HTC, Sony
Ericsson, and several others have been launching these devices on a
monthly, and often weekly, basis.
Some carriers in the United States are responding to the influx
of multifunctional mobile devices by opening up their networks.
Verizon (NYSE: VZ) Wireless is one such carrier, having shocked the
wireless industry by promising to open up its nationwide cellular
network to outside mobile devices, software, and applications
starting next year.
The report also noted that advertising is becoming the primary
method for Internet video to make money, as media companies take
content and TV network programming mainstream on the Internet.
According to MultiMedia Intelligence, Internet video advertising
will reach $1.6 billion next year, making up a larger share of the
$24 billion in total U.S. Internet advertising.