Gone are the days consumers choose mobile phones based solely on their features and functions. New research by GfK[1] shows that smartphone owners in key global markets buy into the ‘experiences’ created by the mobile ecosystem and the majority (56%) are ‘keeping their options open’, when deciding their next smartphone purchase.

Every quarter brings new reports of rapid growth in smartphones sales but a key question left unanswered is what is actually driving purchase in the high end smartphone category? Understanding drivers of purchase is naturally a complex subject due to the sheer number of factors that influence consumer decision making. Looking back as little as 3 years ago, the primary focus for many consumers was acquiring a well designed phone packed with the latest technology such as Wi-Fi, GPS, high resolution camera and so on. In recent years, however, development in mobile hardware has slowed and is arguably becoming less important. Of course, consumers still want good looking handsets with the latest technology, but with so much choice and less differentiation the mobile handset is potentially becoming a more commoditised purchase.

Within the last week, Nokia, Google Android and RIM have announced, alongside rumours of Apple’s iPhone 5, that 2011 will see the start of NFC-enabled phones, and the beginning of widespread commercial usage of this exciting piece of technology.

Near Field Communication (NFC) is a form of wireless communication technology that allows an exchange of data from two devices if they come within 10cm of each other. It’s been around for quite a while; in fact most Londoners use it every day for travelling with Oyster cards. NFC phones first appeared in 2007, when Nokia released the first phone of this type. With all the benefits of NFC, it’s surprising that we still haven’t seen widespread commercial usage. However, this may all change early next year with the release of the Apple iPhone 5, which is rumoured to be NFC-enabled. If the excitement and buzz around new iPhones continues, this could be the start of something truly revolutionary. In an announcement only last week, Nokia pledged to activate their NFC chips in 2011, with Google and RIM keen to follow the trend, both declaring that the next version of Android and future Blackberrys will come with NFC. Clearly, it’s something not to miss out on.

Google has grown their share of the UK internet browser market by 6% year on year; equating to 2.3 million extra consumers who have switched from Microsoft’s Internet Explorer.

Data from the GfK NOP Internet Browser Tracker in the UK shows that market share for all major web browsers has remained static since November 2009, with the exception of Google Chrome and Microsoft’s Internet Explorer. The graphic below shows that Internet Explorer’s lost market share has been Google’s gain:

Back in February 2010 Microsoft were forced to offer a choice of browsers to any consumers using one of their operating systems (i.e. Windows); the so-called ‘browser ballot”. GfK’s data suggests that since then many people in the UK have actually stuck with what they know, resulting in little movement overall. What’s particularly interesting is that Firefox has not been able to grow its market share, with Google capturing those interested in trying something different.

Consumer awareness and understanding of the concept of “net neutrality” is low. However, once the implications are made fully apparent, public reaction is very strong. It is therefore crucial that businesses and governments engage the public in a more open discussion.

Generally accepted to be one of the World Wide Web’s fundamental guiding principles, it appears that “Net Neutrality” may be under increasing threat from political, corporate and market forces. While debate continues as to its exact definition, “Net Neutrality” can be simply expressed as the view that “all internet traffic should be treated equally”; a principle that has resulted in freely available news and information, open digital platforms, globalised virtual communities, digital content sharing and the e-commerce revolution, amongst other things over the last two decades.

High levels of consideration for competitor tablets suggest Apple won’t have it all their own way in 2011 but they’ll be thankful for the competition in the long run.

A recent article in The Guardian [1] posited that one of the best things that could happen to Apple to ensure continued success of the iPad was for competitors to launch tablet computers, and for these products to enjoy moderate levels of success. As happened with the iPod many moons ago, the thinking here is that a batch of serious rival devices would help cement tablets as a ‘legitimate’ category in consumers’ minds, encouraging continued sales and crucially allowing Apple to progressively refine and release further iterations of their hardware. (Although the impressive sales of the iPad so far would suggest this won’t be an issue.)

Smartphone operating systems (OS) have become arguably ‘the’ most critical factor in the mobile device market in recent times. Whilst obviously being crucial to the functional capabilities of a mobile device, they are now also seen as the cornerstone of its revenue potential. This has brought about a fascinating battle amongst the biggest names in the mobile and Internet markets, all looking to ensure their OS is the market leader. The result of this battle is likely to have a significant influence on who will dominate these markets during the next few years.

Phones with advanced operating systems now account for approximately 70% of the contract market in the UK*. This has led to a significant market share decline for Symbian, which has for some time been the most prevalent OS in the market, and increased competition amongst the four key operating systems at the higher end of the market – RIM’s BlackBerry OS, Apple’s iOS, Microsoft’s Windows Mobile, and the newest OS to the market, Google’s Android.