The Smartphone Shakeout

Time Is Running Out for a Viable No. 3. Hardware makers are likely to take the biggest hit in a rejiggering market, say Wharton management professors.

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Published with permission from Knowledge @ Wharton, Wharton's online business journal.

Smartphone maker HTC has repeatedly cut its earnings and revenue outlook, and is reportedly shuttering its South Korea office. Nokia is struggling with a lukewarm response to its Lumia Windows Phone devices and challenges in markets such as China. And Research in Motion has lost market share and delayed its next generation of smartphones until 2013.

The troubles facing these technology manufacturers are reflective of what is shaping up to be a shakeout in the evolving smartphone market, which is increasingly dominated by just two companies, Samsung and Apple.

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