News about AT&T's desire to buy T-Mobile from its German parent
company reminds us that there are many other companies struggling out
there as giants such as Google and Apple claim more control. Here's a
look at companies that need to innovate quickly to survive.
1. Palm
Formerly the king of PDA's (see 1997), Palm has made some very bold
decisions in its career as a cell phone manufacturer. Skipping Android,
Palm chose to utilize the genius mind of Matias Duarte (now a Google
employee) to create its on mobile operating system, WebOS.
Despite its brilliance, the Pre and WebOS failed to put up the right
numbers to keep Palm on its feet. Now owned by HP, Palm has basically
recreated the Pre three separates times, still claiming that it is
innovative. Palm's most recent phone, the
Pre 3,
might have seen success in a June 2007 release. HP, on the other hand,
has started to utilize WebOS in its web-connected printers with much
success.
Biggest Threat: Google. With the largest growing
app store, Google is shutting WebOS out of the development world.
Without third party development support, Palm lacks the excitement of
iOS and Android that comes with gaming and utility applications.
Keys to Success: HP, Touchpad, Veer. One of the
main reasons Palm agreed to be purchased by HP was because of its
ability to reach vast markets around the world. At this point, it seems
like HP only cares about Palm for its WebOS capabilities and is
trashing the distribution promises. With the introduction of its
Touchpad and
Veer,
Palm has created a system for very pure interactions between devices.
The Veer, a miniature sized phone, has good appeal to those that find
the large slate phones to be too bulky. The Touchpad/Veer combination
could be a wild success if handled correctly by HP.
2. Sprint
With recent news of the AT&T-Mobile powerhouse, Sprint is
potentially facing a new threat that could throw them out of the cell
phone industry. Though the deal is not yet completed, Sprint lacks the
capital and infrastructure to be a viable competitor to Verizon and
AT&T-Mobile. While their pricing is certainly competitive, they
have steadily lost market share since before the iPhone was even
released.
The iPhone, with all its power, has made an impact on Sprint without
ever being associated with it. Where T-Mobile and Verizon had an array
of viable iPhone competitors at the time of its release, Sprint was left
gimping behind with its Palm Pre, which came out six months later. To
this day, Sprint lacks the competitive edge to kick-start sales.
Biggest threat: AT&T-Mobile. Potentially the
largest cell phone provider in the country, AT&T-Mobile would have
an extensive 4G network that would dominate Sprint's. With Verizon at
its side, the two could easily oust Sprint from the market by beating
prices, signing exclusivity contracts with hot phones, and having better
service.
Key to success: FCC. If the AT&T-Mobile merger
does not clear the FCC, Sprint not only has its competition back, but
also a chance to purchased T-Mobile itself, which would put them right
in the running with AT&T and Verizon.
