The bring-your-own-device (BYOD) phenomenon could have a negative impact on manufacturing sectors, since cellphone sales could drop. This is what ARCchart, a London-based research and consulting firm, predicts in its latest report. The consulting firm estimates that BYOD could cost the smartphone industry U.S.$40 billion in potential revenue by 2016.
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The logic behind the forecast is that the natural consequence of BYOD will be a contraction of the overall handset market, since just one smartphone will be purchased for both business and personal use, rather than two. ARCchart pointed out that enterprises may, or may not, fund usage fees, but they must find ways to allow a diverse range of products to access corporate networks and systems so that productivity is boosted without compromising security.
“These changing patterns will create opportunities for industry stakeholders, especially handset makers which have not traditionally thrived in the corporate world,” said Caroline Gabrielle, the report’s lead analyst, in a statement. She also added that it might be challenging for device makers which have relied heavily on the enterprise segment, such as RIM.
According to the ARCchart study, 65% of the corporations surveyed confirmed that they will adopt some level of BYOD by the end of 2012. Only 11% have no plans for BYOD in the near future. The top two reasons specified for moving forward with BYOD are cost reduction and staff motivation, yet many firms’ IT departments fear the problems caused by BYOD.
The study revealed that the key concerns include security, fragmented software and ironically, a rise in support costs. ARCchart expects BYOD will trigger a boom in systems which automate mobile device management (MDM) and security as well as other technologies which can reduce the BYOD risk.
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