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.

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.

Expect to see a vibrant and competitive tablet PC market over the next 12 months as Apple sell 2 million iPads globally in less than 60 days.

Apple certainly knows how to get the media and public excited about their latest creation, the iPad. Everyone is talking about the iPad and tablet PCs and this is not just tech press but also mainstream news bulletins. Apple is extremely proficient at sparking people’s imagination around all the creative ways their products, iPhone and iPad, can be used. Apple’s famous strapline for the iPhone was “there’s an app for that” which creates a powerful perception that anything is possible, and the same applies on the iPad.