Yahoo! has had a rocky decade. Once the giant of Internet search it has seen almost all of its market share stripped away by the new boy, Google. Yahoo! are now looking to the mobile market by teaming up with MediaTek. On the same say we hear about how Nokia, one of the first great successes in mobile, have lost a massive share of the market due to increased demand for smartphones.
MediaTek currently operate mostly in China and other emerging markets. The partnership will see Yahoo products being integrated into MediTek mobiles to provide enhanced services to their customers, such as instant messaging, email and photo storage.
It seems that the idea is to offer smartphone services to a more budget handset, essentially undercutting the top-end market which Apple and Google are fighting over at the moment. This is also more bad news for Nokia as it means the MediaTek phones could soon start to encroach on Nokia’s last stronghold, the emerging markets of China, Vietnam, Malaysia, Indonesia, the Philippines and India.
Maui Runtime Environment
What makes it possible for a non-smartphone to offer Yahoo services? The answer is new software developed by Mediatek called Maui Runtime Environment (MRE) which makes traditional phones smarter without the costly hardware.
MediaTek has been having a hard year itself with revenues down by around 40%. Can Yahoo! really compete on this market? It’s arch rival Google is storming ahead with its Android operating system running on ARM chips.
It seems the MediaTek and Yahoo! are hoping the by working together they can recover some lost ground. Nokia may need to urgently look for support from another company if is wishes to stay afloat in the long term. Earlier Google’s chairman Eric Schmidt was talking about the “Gang of Four” who are dominating the web, that is Google, Apple, Facebook and Amazon.
It looks like their domination of the web is spreading to the wider Internet via mobile and causing more havoc. There is likely to be many more major shake ups and partnerships in the coming years as companies attempt to position themselves better to defend against the ever growing power of the “Gang of Four“.