The Blurring Boundaries between Smartphones and Feature Phones

Abstract

In terms of product definition, the largest difference between Smartphones and feature phones is that the former features an embedded open OS while the latter does not. Based on these industry-wide definitions, in the past there were significant differences between the two product types in specifications and market segmentation. However, since early 2009, following the increasing number of companies investing in these products and the growing intensity of market competition, the diversification of products has led to a trend whereby consumers' perception of boundaries between Smartphones and feature phones is becoming more blurred. This report analyzes this trend from the perspectives of prices, software applications and vendors' product strategies, and examines the impact of this trend on the overall mobile phone industry.