25 Years of GCF - The Smartphone Era (2010-2014)

2010-2014

The 2010s marked the era when smartphones became the dominant force in the mobile market, although their ascent was gradual. In 2010, mobile device sales to end users increased by 32% from the previous year to 1.6 billion units, and despite the rapid growth of smartphone sales, they constituted just 19% of the total. Nokia was still the market leader, but its reign was drawing to a close.

By 2014, smartphones had surged to represent two-thirds of global mobile handset sales. With 1.2 billion smartphones sold to end-users, Samsung had established a commanding lead, selling over twice as many phones as Apple, which held second place — followed by Microsoft, Lenovo, Huawei, and LG. However, when considering only smartphone sales, Samsung and Apple were in a tight race.

Technology enables smartphone boom

So, how did smartphones take over so quickly? Numerous factors contributed to the smartphone revolution, including superior operating system software (Android and iOS), open application stores brimming with useful apps, and user-friendly multi-touch screens.

However, these software and user interface advancements also depended on robust network connectivity, with fast and reliable mobile broadband, and interoperability guaranteed by GCF’s certification efforts and the widespread adoption of standards. The arrival of 4G technology marked a significant shift. In 2011, GCF certified its first 4G data device, a USB modem developed by Samsung that supported Long Term Evolution (LTE), which is a term 3GPP used for Evolved UTRA or E-UTRA technology. Later that year, LG certified the first LTE wireless router, the LG FM300, which Vodafone commercially launched as the LTE Turbobox. LTE mobile broadband routers, both portable and stationary, were also introduced by Novatel Wireless, Huawei, ZTE, and others, offering fast wireless connectivity.

While modems and routers led the introduction and certification of new radio access technologies, handsets were quick to follow. GCF certified its first 4G smartphone, the HTC One, in 2012, preceding Apple’s first 4G-supported iPhone 5, which debuted later that year. The HTC One operated on Android 4 with a Qualcomm Snapdragon chipset, delivering performance that satisfied consumers. It boasted a 4.7-inch screen (considered small by current standards), a 4-megapixel camera, GPS support, and an FM radio.

Technology advances: LTE and more

The HTC One was compatible with 4G LTE as well as legacy GSM/EDGE and UMTS/HSPA standards. 3GPP finalised the initial release of the LTE standard in December 2008, which provided peak download rates of approximately 100 Mbps, reduced latency, enhanced mobility support, and improved voice call quality. The LTE standard progressed to incorporate Multiple Input Multiple Output (MIMO) technology, utilising multiple antennas to boost signal performance and throughput.

In addition to LTE, smartphones from leading brands — including HTC, Samsung, Sony Ericsson, Microsoft, and Huawei — supported another standard: Dual Carrier High-Speed Packet Access (DC-HSPA). DC-HSPA optimised the use of available resources by multiplexing carriers, offering operators who were behind in 4G deployment the ability to provide commendable data speeds.

During this time, LTE transitioned towards LTE Advanced (LTE-A), introducing new capabilities such as carrier aggregation, which enabled significantly higher data rates and enhanced performance. LTE-A could achieve download speeds peaking at up to 1 Gbps and uplink speeds of up to 500 Mbps. In 2014, GCF certified its first LTE-A device, an LTE-A variant of the Samsung Galaxy S5, which was exclusively launched in South Korea. As wireless technology advanced by leaps and bounds, GCF kept pace by broadening its certification remit. Field trials, based on the GSMA TSG TS.11 specification, became compulsory for LTE devices in 2010. In 2011, performance items were incorporated, addressing areas that were relevant but not obligatory for GCF certification, such as acoustics, battery life, and antenna performance. Furthermore, 2014 marked the inclusion of CDMA technology, continuing the efforts initiated by the CDMA Certification Forum (CCF).

The rise of the app economy

App stores were not an invention of Apple and Google, but these tech giants transformed them into an unprecedented force in the mobile industry. Apple launched its App Store in 2008 with an initial offering of 500 applications, a figure that rapidly escalated to tens of thousands and more. The Google Play Store, initially named Android Market, debuted the same year and experienced similar exponential growth.

New companies across various sectors successfully launched their services on these app stores, bypassing traditional routes to market, thereby expanding their customer base and revenues in tandem with the burgeoning smartphone market. For instance, Uber, which started in 2010, now boasts annual revenues exceeding $37 billion. Mobile gaming also saw rapid growth, with the Apple and Google Play app stores significantly boosting the industry. By 2010, popular titles like Angry Birds were generating millions of dollars monthly, propelled by the novel concept of in-app purchases.

Market changes

As Android and iOS surged in popularity, other once-prominent players were in decline. Nokia, previously a titan in mobile handsets, had lost its edge. Microsoft’s various mobile operating systems, while somewhat successful, never attained the dominance in the smartphone market that the company enjoyed in the PC sector. Windows Mobile’s market share peaked at nearly 50% of all smartphone sales in Q2 2007, but rapidly dwindled to single digits as consumers shifted to Android and iOS.

In 2014, Microsoft and Nokia joined forces when Microsoft acquired Nokia’s handset division for $7.2 billion. However, the merger came too late to mount a serious challenge against Apple, Samsung, and the burgeoning touchscreen smartphone market. Similarly, RIM’s BlackBerry OS experienced a dramatic decline in market share.

With Samsung and Apple at the forefront, the mobile industry — and GCF — were gearing up for the next major shift: the advent of 5G.

 

This text is part of the booklet "A Foundation for the Future: 25 years of GCF", available for download here.