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Economic and business perspectives on smartphones as multi-sided platforms

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  • Campbell-Kelly, Martin
  • Garcia-Swartz, Daniel
  • Lam, Richard
  • Yang, Yilei

Abstract

We interpret mobile operating systems such as iOS and Android as multi-sided platforms that serve a variety of “customers,” including consumers (users), handset makers, network operators, app developers, advertisers, and chip manufacturers. After reconstructing the history of smartphones, we explore the variety of business models that operating system owners or sponsors have implemented, and highlight their implications for the relationships between platform owners/sponsors and customers. Next we focus on those dimensions of the smartphone experience that consumers declare they value the most, namely network quality, the features of the operating system itself, and the selection of apps available for each platform. We study how different mobile operating-system owners or sponsors have managed to innovate in these various dimensions, often by engaging other customer types. In the concluding section we rely on the insights derived from multi-sided platform theory to analyze the reasons why two mobile platforms—Apple׳s and Google׳s—have been able to displace various incumbents.

Suggested Citation

  • Campbell-Kelly, Martin & Garcia-Swartz, Daniel & Lam, Richard & Yang, Yilei, 2015. "Economic and business perspectives on smartphones as multi-sided platforms," Telecommunications Policy, Elsevier, vol. 39(8), pages 717-734.
    • Handle: RePEc:eee:telpol:v:39:y:2015:i:8:p:717-734
    DOI: 10.1016/j.telpol.2014.11.001
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    References listed on IDEAS

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    Cited by:

    1. Garcia-Swartz, Daniel D. & Campbell-Kelly, Martin, 2019. "Openness as a business strategy: Historical perspectives on openness in computing and mobile phones," Information Economics and Policy, Elsevier, vol. 48(C), pages 1-14.
    2. Santoso, Adhi Setyo, 2018. "Maximizing Strategic Alliances in the Multi-Sided Platform Firms," INA-Rxiv eyskp, Center for Open Science.
    3. Garcia-Swartz, Daniel D. & Muhamedagić, Mensur & Saenz, Diana, 2019. "The role of prices and network effects in the growth of the iPhone platform," Technological Forecasting and Social Change, Elsevier, vol. 147(C), pages 110-122.
    4. Lee, Searom & Lee, Sang Yup & Ryu, Min Ho, 2019. "How much are sellers willing to pay for the features offered by their e-commerce platform?," Telecommunications Policy, Elsevier, vol. 43(10).
    5. Xia, Jun, 2017. "China’s telecommunications evolution, institutions, and policy issues on the eve of 5G: A two-decade retrospect and prospect," Telecommunications Policy, Elsevier, vol. 41(10), pages 931-947.
    6. Heikkilä, Jussi & Rissanen, Julius & Ali-Vehmas, Timo, 2023. "Coopetition, standardization and general purpose technologies: A framework and an application," Telecommunications Policy, Elsevier, vol. 47(4).
    7. Garcia-Swartz, Daniel D. & Garcia-Vicente, Florencia, 2015. "Network effects on the iPhone platform: An empirical examination," Telecommunications Policy, Elsevier, vol. 39(10), pages 877-895.
    8. Könnölä, Totti & Eloranta, Ville & Turunen, Taija & Salo, Ahti, 2021. "Transformative governance of innovation ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    9. Wipo, 2017. "World Intellectual Property Report 2017 - Intangible Capital in Global Value Chains," WIPO Economics & Statistics Series, World Intellectual Property Organization - Economics and Statistics Division, number 2017:944, April.

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