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Social Networking, Mobile Commerce, and Online Auctions

Mobile Device Operating Systems
Apple and BlackBerry use their own proprietary operating systems. In the past, other
phone makers (including HTC, Motorola, and Samsung) created their own operating
systems and apps for common functions such as calendar, contacts, and e-mail; these
manufacturers now use a standard operating system provided by a third party.
The most common third-party operating systems today are Android and Windows
Phone. The most popular and fastest growing third-party operating system is Android,
which was developed by Google. Android is open source, which allows smartphone
manufacturers to use it at no cost. Most smartphone manufacturers that use Android add 287
some customized features to the software’s interface.
One of the first operating systems for Internet-capable phones was made by Palm for
their phones and other portable devices. Palm’s phones became less popular and, after an
attempt to sell its software to other phone manufacturers, the company went out of
business. Symbian, which started as Nokia’s proprietary system, became open source in
2008. Few other phone manufacturers adopted the system and, in 2011, Nokia itself began
using the Windows Phone operating system for its smartphones. Windows Phone is a
proprietary operating system sold by Microsoft.
Figure 6-7 shows the change in U.S. market shares for leading smartphone operating
systems during recent years.

100%
90%
80%
Windows (Mobile
70% and Phone 7)
Symbian
60%
Palm webOS
50% BlackBerry (RIM)
40% Apple iOS
Android
30%
20%

10%
0
2006 2007 2008 2009 2010 2011 2012 2013
Source: Adapted from various reports by Gartner, The NPG Group, and the Nielsen Company.
FIGURE 6-7 Smartphone operating systems: U.S. market shares
Once a manufacturer chooses an operating system for its phones, the user cannot
switch easily to a different operating system. Unlike computers, the operating system is
integrated into the software the carrier uses to make the phone operate on its network.

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