Early diffusion of smartphones in OECD and BRICS countries: An examination of the effects of platform competition and indirect network effects

• This study examines macro-level adoption factors of smartphone diffusion.
• Platform competition, platform openness, and price influence the diffusion of smartphones in OECD countries.
• In BRICs countries, platform openness and price are the main factors of smartphone diffusion.
• This study suggests that a platform (standard)-neutral policy is important in the growth stage of smartphone markets.

Employing the Gompertz model, this study examines macro-level adoption factors of early smartphone diffusion in OECD and BRICS countries. The results of the data analysis suggest that mobile OS competition, mobile network standard competition, open source OS share (platform openness), and price influence the early diffusion of smartphones in OECD countries. However, in BRICS countries, open source OS share (platform openness) and price are the main factors of smartphone diffusion. As the smartphone market continues to grow, it seems that the effects of mobile platform competition and indirect network effects on smartphone diffusion may co-exist in global smartphone markets. In addition, the results of the data analysis suggest that a platform (standard)-neutral policy is important in the growth stage of smartphone markets.Also, analyses of influential factors on smartphone price reveal that the size of the installed base of subscribers and market entry of Android phones in global smartphone markets contribute to decreases in smartphone price in OECD and BRICS countries. In addition, in BRICS smartphone markets, mobile OS competition has an impact on reduction in smartphone prices.