Analysis of Smartphone Industry Innovations and Market Dynamics

This report provides a comprehensive analysis of the smartphone industry's evolution, examining the historical context of technological advancements, differentiating between inventions and innovations, and exploring the functional sources of innovation for key players like Motorola, IBM, BlackBerry, and Apple. It delves into the technology-push and demand-pull models that shaped the industry, evaluating IBM's innovation and commercialization efforts in mobile devices. Furthermore, the report investigates BlackBerry's rise and fall, contrasting its strategies with Apple's success, and analyzing the 4Ps of innovation for both companies. The report also provides a detailed timeline of smartphone innovations, highlighting significant milestones from the first mobile phone call to the iPhone's introduction and beyond. This analysis aims to provide insights into the dynamic nature of the smartphone market, the factors driving innovation, and the competitive strategies employed by major industry players. The report is a valuable resource for understanding the complexities of the smartphone industry.

10190012 – Dang Thi Chuc Linh

INTRODUCTION
I will explain in this assignment the changing history of the technological
industry and the difference between inventions from technological
breakthroughs, major innovations and small/incremental innovations. Moreover,
I will show you the different functional sources of innovations for the products of
Motorola, IBM, BlackBerry and Apple and their demand pull, technological push
model. In addition to that will be the analysis of IBM to evaluate the company’s
company innovations and commercialization on mobile devices. On the other
hand, I’ll show you how BlackBerry became to the leading position of the
mobile market before 2007 and why BlackBerry didn’t success in maintain its
position while Apple can easily replace IBM in producing smartphones. Lastly,
4Ps of innovation of BlackBerry and Apple will also be provided neatly.

MAJOR FINDINGS
TASK 1.
Inventions and Innovations related to the smartphone industry timeline:
- 1973 – First Phone Call : Motorola's Marty Cooper called Joel S. Engel, a
rival at Bell Labs on April 3, 1973 for the first time from a handheld mobile
phone called Motorola DynaTAC 8000x.
- 1979 – 1g: NTT's system, used in Tokyo for the first time in 1979 and later
expanded to all over Japan and Nordic Mobile Telephony in the Nordic
countries, was the first automatic analog cellular systems deployed.
- 1982 - Mobira Senator: The device produced by Nokia was widely
considered the first real mobile phone for customer. This innovative mobile
phone used the NMT standard as part of wireless cellular technology's first
generation (1G).
- 1983 – 1g Spread : Ameritech Mobile Communications was the first
company to launch a 1G telephone network in the United States on 13
October 1983, starting with Chicago.
- 1984 – Motorola Dynatac 8000x: Motorola also introduced its first portable
mobile phone, which was also used to make the first public telephone call
in the United Kingdom in 1985.
- 1989 - Motorola Microtac 9800x : With its compact size and mouthpiece,
the phone displayed true flexibility. There were antennas on both model
8000x, 9800x, and was only used to make calls.
- 1992 - Nokia 1011: Nokia launched the first mobile telephone in the world
to be used at any place with an additional of text messaging function. This
was due to its ability to access the GSM Network, frequently referred to as
the second-generation (2G) wireless cellular technology.
- 1994 - Simon Personal Communicator: This IBM device was first
introduced in 1994 and is widely recognized as the first smartphone in the
world. The IBM Simon, being far ahead of time, had a touch screen and
many pre-installed features such as the address book, monitor, diary,
electronic notepad, world clock. But there was only a tiny monochrome
LCD screen with the battery life of one hour.
- 1996 - Nokia 9000 Communicator: The phone served as inspiration for

RIM’s BlackBerry. It has a full QWERTY keyboard and naming was one of
the first telephones to accept and transmit e-mail and FAX via its GSM
modem.
- 1997 - Siemens S10: Siemens was the world's first running smartphone
with a full color display when it released the S10 device in 1997. Up to six
rows of data displayed in four different colours (white, red, blue and green).
- 1999 - Nokia 7110: It was also one of the first handsets to provide mobile
internet connectivity through its groundbreaking WAP app, but this
permitted only access to WAP configured websites. It was also one of the
first telephones to install personalized ringtones, which became common in
the mid-2000s.
- 2000 - Sharp J-Sh04: It was the first handheld telephone with an
embedded digital camera, although it was just 0.11 megapixels and only
available for sale in Japan.
- 2001 – 3G: NTT DoCoMo, Inc. Launches 3G FOMA service on fully
commercialized basis
- 2002 – Blackberry 5810: The BlackBerry 5810 was the first model with
phone capabilities but a headset was required to make call.
- 2003 - Blackberry (Rim) 6210: Although many successful BlackBerry
models were available before, the 6210 was the first BlackBerry to be able
to make phone calls. It was also the first mobile with BlackBerry Messager
(BBM) – the popular BlackBerry instant messaging system.
- 2005 - SONY ERICSSON WALKMAN W800: The W800 was one of the
first telephones to focus on music on the market, probably because of the
new iPod success. In all aspects, this phone was one of the first to base its
innovative functionality on the basic characteristics of a mobile phone,
including calling and email.
- 2007 – The Iphone: While not the first handset on the market, it came at a
time when phones with physical keys, small screens and clunky prototypes
were mostly used in the cell phone industry. Apple revolutionized the
smartphone industry with the introduction of the first generation iPhone,
with many critics claiming that this is the most significant time in the history
of smartphones.
- 2008 - HTC (T-MOBILE) DREAM G1: This was the very first phone with

the Android operating system.
- 2008 – Iphone 3G: The battery life was upgraded, 3G network supported
and a new, enhanced operating system were included. The iPhone 3 G
was also one of the first phones to prioritize apps and was also one of the
first to introduce Apple's ' App Store ,' consist of 552 apps at launched.
- 2012 – Iphone 5: People now could use their fingers to unlock their phones
and get an app for almost every purpose on the appstore.
The differences
Invention is the discovery or creation, in the application of previous
knowledge, of a material or system. Innovation applies basic findings or
inventions for a specific application to produce a useful product or process,
applying value to the existing idea, product. The significant differences
between the two terms are:
- The invention is referred to as the creation of a device / process that was
never made previously for a service or system. The first ever design for a
service or system was considered innovation.
- The invention has to do with creating a new product. On the other end,
innovating is related to value added process and modifying the current
product.
- The innovation came with a completely new idea and the theory of how it
functions. This is the practical implementation of the new concept in
relation to technology.
- For the innovation, technical expertise are required. Innovation must
include a broad array of advertising, software and tactical skills.
- The invention takes place when a researcher comes up with a new
concept. On the other extreme, innovation happens when a new product or
an improvisation becomes required for the existing product.
- While the invention is confined to the organization's department of research
and development. Innovation spreads throughout the enterprise.
Major (breakthrough) innovation differs from incremental innovation in a
number of ways:
- Incremental often starts with a specific target to accomplish and
breakthrough begins with a problem that has no solution in the current

situation.
- Incremental generally brings added value or competitive advantage over
the short term. Breakthrough is considered a "game changer" or a “page
turner”.
- Breakthrough is the bottom-up process most of the time and incremental is
top-down.
- Differentiation between incremental and breakthrough has to do with the
degree to which a specific innovation transforms the competitive landscape
and eventually obsolescence entire industries
TASK 2.
The functional source of innovation is to categorize companies and individuals in
terms of the relationship they derive from a particular innovation in a particular
product, process or service. The user would benefit from using the product. The
production of products would support representative producers. The supplier may
take advantage of providing products and parts for the production and processing
of the item. Other sources could be competing companies… (Von H., 1988)
Product Customer Manufacturer Supplier Sources
of
innovatio
n
Motorol
a
MicroT
AC
9800x
The users wanted a
smaller and lighter
design compared to
the 8000x design for
more convenience.
The costs for
handsets declined in
1989 to attract new
customers to the
mobile service
providers. Motorola
then took the chance
to reach the market's
top end.
N/A Necessity
IBM’s
Simon
The advanced
technology of the
Due to the
technological
N/A New
Knowledge

product went too far
ahead of time so It
was a bit of a flop
development, IBM
created the
smartphone featured
a monochrome LCD
touchscreen
BlackB
erry
5810
The product
targeted users who
are business
men/women for now
they can have a
more convenient
way of checking
emails.
The smartphone
pioneer introduced
one of the first
phones with email
capabilities, helping
to usher in a new
kind of office
communication.
N/A Changing
perception
Apple
iPhone
Apple focuses
primarily on middle
and upper class
because these
consumers are
usually ready to pay
for "better user
service" a little
more.
Earlier in 2007, the
people could not use
touch screen devices
with the naked hand,
and Apple
transformed the hand
held device idea by
releasing its first
iPhone using the
company’s
technology.
superior
in supply
chain
manage
ment
Market
structure.
Apple
shaped the
smartphon
e market.
TASK 3:
Technology-push and demand-pull are 2 important aspect of resolving a
technological paradigm by the mean of market changes and technological
knowledge. Market demand determines whether new products are produced by
manufacturers and businesses or not. The result of a technological change is
the reverse, as scientific and technical advancement has been used to produce
new goods, not focusing too much on the market. (Macarthur, 2016).

- Motorola MicroTAC 9800x (1989) : From the need of the user for a
convenient mobile device with a longer life battery and a shorter charging
time, Motorola based on the demand pull of the phone market to release
the smallest and lightest phone available at the time. The product was
design to easily fit into any shirt pocket. The flip piece design was the basic
form for small and mid-size devices from Motorola until the StarTAC was
introduced in 1996.I
- BM’s - Simon (1994) : The Simon Personal Communicator PDA to include
telephony features, even considered the first ever smart phone. Holding the
technology advantage, Mitsubishi Electric developed the IBM system which
includes features of its own wireless personal digital wizard (DDA) and cell
radio technology during the construction of the IBM device. But the
technology push approach soon led Simon to its demise due to the fact the
the battery life was only for an hour and the flip phones became slimmer
and much more convenient, which perfectly fit with the users’ needs at that
time.
- BlackBerry 5810 (2002) : BlackBerry has been a mobile pioneer, its
phones have set the standard for what can be a modern communication
system for many years in the first decade of this century. Back in the 90s, it
was predicted by Mike Lazaridis – Founder of BlackBerry, that mobile
telephones would collide with portable handhelds and PDAs. In addition to
that, A new wireless networking technology called the General Packet
Radio Service (GPRS) was launched in 2000. This served as a
technological push for the company to make a splash and rivalry against
the major cell phone manufacturers of time, launch the first north American
system to accept GPRS and 2G GSM voice service.
- Apple iPhone (2007) : Although many features of the iPhone are
considered outdated by the current standards, the product is viewed as an
example for today's mobile phones, replacing physical buttons and a flat
touchscreen. Apple claimed to reinvent and create a revolutionary mobile
phone by applying the technology push model and come up with the
Iphone. The rival of the product created a huge demand for a “smart
phone” and have extended itself till today time.

TASK 4: IBM
- IBM was founded when mainframe computers were an ongoing market and
quickly became the leading supplier of computers, not smart phones.
+ IBM’s organizational vision: The Simon took the best technologies
available at that time for portable computing and merged it with a mobile
phone, to build a machine that could do much more than just dial. This
applies to one of the company’s vision component as introducing
extraordinary technology to new customers and help them solve their
problems, new idea innovation to satisfy market demand. And continuing to
be a basic resource of what is invested in the mainframe industry
worldwide. Other than that, it is also their hope to become the most
successful and important IT company in the world by remain the industry's
fundamental asset.
+ IBM’s leadership: IBM management decision-making by the company's
primary internal party. While IBM was the biggest company in the
computing industry, the decision-making relied too much on the internal
and complex leadership chain that rendered rapid change more difficultIn
the 1970s, IBM had a 14-layer management chain that took much time to
get information to the responsible personnel who made the company
unable to respond to new problems.
+ Culture and teamwork: Moreover, the key and most distinguishing
characteristic of the organizational culture of IBM is radical thinking,
followed by their dedication to every client’s success and the innovation
that matters. In addition, the company highlight individual responsibility,
which improves corporate expertise for problem-solving at all levels. IBM
culture and teamwork are designed to create a working environment to
build the connection between employees and managers and thus to
increase overall productivity. The IBM Board decided in the collapse of IBM
to cut poor development funds to cut business costs but this unintentionally
generated an ' dog eat dog ' environment in the company.
+ So how the innovation and commercialization of IBM is shaped thorugh
these components? IBM's vision is customer-driven. IBM centered its
product to customers. Since the rival of phones, IBM had an idea of
creating a more convenient mobile device for the bussiness men and

women to fulfill the need of the market hence IBM innovation and
commercialization is affected by the force of market pull.
- It was impracticable for a mobile device, and its price tag of $899 was
prohibitively high for most users, at a weight of half an kilo and with only an
hour battery life. It only served in the USA and there was no mobile internet
at that point, so it could not send emails without being wired to the internet
through a computer, though it was fax-enabled. The IBM Simon laid the
foundations for an entirely new product class that merged the features of
mobile phones and personal digital assistants (PDAs) despite of being a
commercial flop. Although highly innovative, Simon was hardly a
resounding success for being too far ahead of time. Not seeing the
potential in developing the product and for not meeting the market demand,
the company decided not to rapidly move to the smartphone market.
TASK 5: S-cruve
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
0
20
40
60
80
100
120
140
Blackberry
Iphone
Time
P e r f o r m a n c e
2007 2010
Figure 1. The S-curve of Iphone and BlackBerry
Above is the S-curve diagram developed based on the unit sale of the 2
companies from 2006 to 2012. The firsts BlackBerry was an outstanding product,
a page turner for the mobile industry. A hardware keyboard and trackball were

BlackBerry's greatest innovations. In the first few years, little has changed in the
rival of the Iphone. RIM still offers the killer feature such as text and e-mail.
Apple's iPhone was not the most-purchased consumer smartphone coming out to
the market. But the product performance has noticeably improved over 3 years
from its first debuted in 2007, along with BlackBerry’s. BlackBerry still has many
advantages in the business, but the iPhone easily closes the gap. Apart from the
average time spent calling and text messaging, Apple user is expected to devote
30 minutes a day with the iPhone with its mobile social gaming platform. At the
time T1 when BlackBerry's rival , the iPhone appeared, BlackBerry still dominated
the phone market, and was always constantly developing and new products.
Blackberry is still selling despite phone or not because Apple runs on a completely
different platform than BlackBerry. In terms of cost advantage, BlackBerry does
not need it because BlackBerry monopolizes its production and sells BlackBerry
machines that are different from Apple iPhones.
The reasons why BlackBerry failed to stay in the market are:
- They didn't catch up with the technology developments. Smart phones
launched by Apple had a full touchscreen while BlackBerry decided to stayed with
their design. They always believed that the physical keyboard was desired and
that people would not be able to leave them because of their dominance of the
market before the iPhone release. When you lost half your mobile phone screen
to a keyboard, you'd look like you used a device from the past such as an old
Nokia.
- Their main concentration was not the customer but the business: The
customers were the target of Apple and the Android phone manufacturers. They
sold billions of phones that can be purchased and used by anyone. BlackBerry
succeeded primarily by supplying huge corporations’s IT departments and that's
what kept their the momentum. To the highly sophisticated IT managers, iPhone
seemed like toys.
- The consumer sale was not being increased by any chance: They had a
place in the consumer market even when their success came from the business.
But it was impossible for them to expand it. This was because of the products’ not
so eye catching looks and therefore no one considered BlackBerry as a “cool
phone”. BlackBerry didn’t catch up with the trend of Facebook and Youtube, not

until very later on.
- They held on to their OS: The ability to download any form of software you
want and turn your phone into something amazing instantly made smartphones a
massive thing. You can now do incredible things on your smartphone from virtual
sports to productivity apps. BlackBerry's OS does only offer a small portion of the
features and have never chose to develop all of the features like the competitors.
BlackBerry’s 4Ps innovation & the innovation funnel
Product Process Position Paradigm Innovation
funnel
Meani
ng
The
company
has created
this
adjustment
to provide
its
customers
and bring
value to the
enterprise.
This is a
method of
product
development
that
increases
the quality
and offer the
product with
a better price
for
customers.
The
business is
always
striving to
achieve
these roles.
This is also
the product
of the
operation of
the
business.
This is the
mechanism
by which
businesses
prepare new
ideas and
innovation, as
well as when
companies
are faced
with risks and
challenges
This is the
process of
creating and
developing
new ideas by
providing steps
to put those
ideas into
practice. This
makes it easy
and useful to
get the idea
Black
Berry
BlackBerry'
s most
successful
product is
the mobile
phone.
They
expand
their range
of products
With their
newly added
product
lines,
BlackBerry
pushed for
less
expensive
prices, and
thus
BlackBerry
decided to
target
specific age
and gender
groups with
different
products,
focusing on
the
BlackBerry
was founded
as a mobile
phone
manufacturer.
The company
began
dominating
the
professional
BlackBerry's
main target is
secure
communication
s and mobile
productivity, so
the company’s
product
traditionally
uses

to include 9
product
lines.
innovated
the
production
and
distribution
cycle.
business
men and
women
but easy to
use mobile
telephones
market
following
several
breakthrough
and
aggressive
marketing
campaigns.
BlackBerry OS
for its
operating
system. This
helps
BlackBerry
achieve its
goals, but its
position in the
market was
taken away
later on by
Android and
iOS.
TASK 6: Apple
Friendliness is a major factor in mobile selection — and Apple has made the future
of mobility one step closer. In reality, Apple understands the things people enjoy
doing, introducing phone touchscreens. The iPhone was an instant success because
it was a game changer. Steve Jobs was not only the primary source of new goods,
he also took an active role in the marketing. Apple being the market leader, releases
new products and updates of the operating system very often. This act inspire
excitement among customers, developers, and the industry. Another massive cause
of Apple’s success is its innovative business plan, which is constantly changing.
Apple first came into the market as a computer company. But they knew that in order
for the business to bloom, they had to expand its offerings and introduce a greater
variety of products. According to Apple, traditional retail outlets did not give the
customer their full experience with its products, which Apple knew would drive sales
and encourage customer loyalty. So the company started openning its retail store
and boasted to over 460 stores worldwide.

Product Process Position Paradigm Frugal
Innovation
Mean
ing
The
company
has created
this
adjustment
to provide its
customers
and bring
value to the
enterprise.
This is a
method of
product
development
that
increases
the quality
and offer the
product with
a better price
for
customers.
With
Position, it’s
meant the
market
segment
that the
product or
service is
currently
targeted.
This is the
mechanism
by which
businesses
prepare new
ideas and
innovation, as
well as when
companies
are faced
with risks and
challenges
Frugal
innovation is
low priced but
can meet the
specific needs
of target
consumers
(Bhatti, 2012).
Appl
e
In 2007,
Apple
launched its
first iPhone.
They built
the mobile
phone in a
totally
different way
from what
the customer
always sees
in a phone
by
incorporating
a touch-
display and
an easy-to-
use
The model is
iterated by
Apple
throughout
the
development
. The product
will be
designed, it
will be tested
and
evaluated,
then the
design team
will build on
it and it will
be
developed
over and
Apple is
effective in
developing
products
that are
based on
the
customer's
life cycle,
gender, and
occupation.
The goods
are sold in
different
areas while
the product
is classified
according to
customer
Apple wants
to deliver the
next user
interface
paradigm and
completely
new
communicatio
n models that
tend to point
to the
sophistication
of AR, VR,
and machine
intelligence.
Apple 5c, SE
and Xr models
have low
prices that are
affordable to
lower-income
people and
basic functions
that address
people's
communication
needs.

operating
system.
over again.
These cycles
take 4-6
weeks at a
time and can
be carried
out many
times over
the life cycle
of a product.
demand and
age.
CONCLUSION
I have broadened my knowledge of the Computer mobile industry history and the
largest companies that manufactured such devices at that time after completing this
assignment. On the other hand, the advances and technological breakthroughs and
the major and the minor technology innovation was informative along with innovation
and commercialisation.
Moreover, I learned a lot about IBM, Apple and BlackBerry, why ones fall or rise in
the industry.

REFERENCES
1. Jessica Lombardo. (2018). IBM’s Mission Statement & Vision Statement
(An Analysis). [online]. Panmore Institute. Available at:
http://panmore.com/ibm-vision-statement-mission-statement-analysis-
recommendations
2. Jessica Lombardo. (2017). IBM’s Organizational Culture & Radical
Thinking. [online]. Panmore Institute. Available at: http://panmore.com/ibm-
organizational-culture-radical-thinking
3. Julian Prokaza. (2018). What was the first smartphone? Celebrating the
IBM Simon. [online]. BT. Available at:
http://home.bt.com/tech-gadgets/phones-tablets/the-ibm-simon-the-first-
smartphone-11363997537456
4. Abhijeet Pratap. (2018). What are the sources of innovation?. [online].
Notesmatic. Available at: https://notesmatic.com/2016/09/sources-of-
innovation/
5. Katherine Johnson. (2012). The Innovative Success that is Apple, Inc.
[online]. Marshal University. Available at:

https://mds.marshall.edu/cgi/viewcontent.cgi?article=1420&context=etd
6. Phil Goldstein. (2016). BlackBerry 5810 Kickstarted the Mobile Work Era.
[online]. BizTech. Available at:
https://biztechmagazine.com/article/2016/11/blackberry-5810-kickstarted-
mobile-work-era
7. Eric Zeman. (2019). On the MicroTAC’s 30th anniversary, Motorola dishes
on folding phone craze. [online] Android Authority. Available at:
https://www.androidauthority.com/motorola-microtac-folding-phones-
980732/
8. Interaction Design Foundation. (2019). Apple’s Product Development
Process – Inside the World’s Greatest Design Organization. [online].
Interaction Design Foundation. Available at: https://www.interaction-
design.org/literature/article/apple-s-product-development-process-inside-
the-world-s-greatest-design-organization
9. Pearl Zhu. (2013). “Breakthrough Innovation vs. Incremental Innovation”.
[online]. Future of CIO. Available at:
http://futureofcio.blogspot.com/2013/12/breakthrough-innovation-vs-
incremental.html?m=1
10. Tom Grasty. (2017). The Difference Between “Invention” and “Innovation”.
[online]. Huffpost. Available at:
https://www.huffpost.com/entry/technological-inventions-and-
innovation_b_1397085
11. Owen Andrew. (2018). The History and Evolution of the Smartphone: 1992-
2018. [online]. Text Request. Available at:
https://www.textrequest.com/blog/history-evolution-smartphone/