There is a popular belief that the smart phone will become a low profit item like the personal computers. Though this concept is not accepted by all, one thing is certain that all domestic and weak brand manufacturers have to strengthen the applications and services provided in order to remain profitable. And they are already exploring the possibilities. Millet is leading the way in providing a combination of hardware and software. But the problem is that being a pure hardware company, there is no profit from the application provided to the customers. So they are exploring innovative ways for making the business profitable. “360 special for machine” is a result of this innovation. It is combination of hardware and software. Zhou Hongxiang, the founder of the product is trying hard to make the product profitable, but the profitability is still under doubt. Till now, the configuration as well as the advanced operating systems offered by the smart phones them – Windows, IOS and Android are quite compatible with the PC platform. Also the open SDK and the user friendliness has simplified the process of application development. The mobile internet has opened up three sources of income for the providers. First is the direct usage by the consumers through games, pictures, music and videos. The second is through the ads and promotions by the manufacturers. The third one is commissions earned whenever an online commercial transaction takes place. Another future scope of earning for the low and middle end smart phones will open up as they establish their own accessories platforms, which will improve their brand image. Using a third party services and accessories will further increase their profitability. The value added applications when applied with multi-screen interactive smart ecosystems will give a boost to business of these smart phones. Multi-screen iShare – the maker of the work and entertainment center of smart phones. The principal utility of a mobile phone as an equipment is communication. But in today’s technology savvy world the equipment must integrate the hardware and software. The early intelligent terminal equipments had limited hardware computing capability. As a result running operating systems and software applications were quite a complicated job. But in the recent pat there has been rapid development in technology of smart phones and tablet PC’s. The development of embedded system software, such as Windows, IOS and Android based on Linux has given the smart phones and the tablet PC”s an edge over the ordinary PCs. The early hardware platform for the smart phones – the Symbian, which was the only player in the smart phone for years has now lost it’s feasibility as there had been fast development in the hardware and also because of the limitation in the software framework and applications. The advanced operating system of Windows, iOS and Android platform which are now present in the embedded market are compatible with the PC platform. The task of application and development has become simple and quick in the open SDK of platform due to the ease of their use. In past the software terminal developer had to worry about the performance and the memory. But today’s developer do not have to worry about that, they need to focus only on scenarios and application logic. Further development in the smart phone terminals will come up with more and more varieties of applications and services and slowly the profitability will be nearing that of the PC industry. Development of terminal hardware hosting platform is an outstanding personalization and a time consuming process. There is a disagreement between a personalization and a bearing platform. This has resulted in a confused environment and at the same time has helped in diversification in the industry. Many terminal companies have now entered into application and services. As a result their product value and prices have gone up. At the same time many internet companies have ventured into intelligent terminal hardware platform. Smart phones and tablet computers has to be clearly distinguished from a Personal computer. They are a means of round the clock communication, social activity and entertainment. Unlike PC, different applications are not interdependent, but are connective and dependent. Most of the smart phone applications have to be linked with the owner’s contacts. The basic applications like telephone, message, search, network connection management, location service, map and camera have to be user friendly. The applications based on the locations have to be linked to map applications. All the applications have to provide a stable interface for the third party. Hence it is not the hardware that decides the product value, but a combination of hardware, software, applications and the integration of the applications, user experience and the service provided to the user.

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