How to Win the Smartphone War: Quit Playing

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Aug. 4 -- Bloomberg's Cory Johnson explains why bowing out of the smartphone war may be the way to win. He speaks with Trish Regan on "Street Smart." (Source: Bloomberg)

Like it, the best way to win is to get out.

If you're losing, why not?

They ended up in a real commoditize business but they were not benefiting from the economies of scale provided by android.

They were trying to write their own software and found themselves out of the market.

The big lesson here is him how much market share can change in a very short time.

Going back to 2004, nokia in the u.s. had a 50% of the u.s. cell phone market and dropped to virtually zero in a short time in seven or eight years.

All the leaders in business now or right to notice that.

Samsung was the dominant company in the cell phone business worldwide.

They are starting to lose market share as well.

It shows you how fast these things can change.

Specifically in this emerging business of cell phones and smart phones.

It does show you how fast the and change.

-- how fast it can change.

As we look at the landscape right now, it seems as though apple is certainly winning.

Samsung may be a close second.

Who else is on the horizon that could start to eat their lunch at some point?

Apple leaves the market share and samsung is number two.

Worldwide, the situation is reversed.

What starts to get interesting are some of the emerging happenings out of china, makers of windows phones as well.

New start up from the last quarter ounce sold everyone else in the last quarter in china.

What is interesting is, the bid for t-mobile, we talked about that last week.

What it might mean to sprint and so on.

T-mobile is fundamentally changing the cell phone game.

And indeed the smartphone game, by offering plants where the consumer is not stuck with a plan, and they can buy their own phone and take it to the carrier.

But one of the things were starting to see is that when consumers have to pay the full price for a phone, they don't want to spend $650 for an iphone or a samsung galaxy.

They're interested in a phone with a lot of features that is a lot cheaper.

The kind of phones being made by htc worldwide, lenovo also an important company and they could make these kind of phones.

Those midpriced, semi-fully featured smartphones may ultimately be the beneficiary of the changes that seem herbal -- changes that t-mobile and could emerge in short order.

Thank you very much, cory.

Speaking of winning, warren buffett has never had so much

This text has been automatically generated. It may not be 100% accurate.

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