It is a paradoxical development: even Though cheap Smartphones are getting better and better, shooting at the same time, the prices of the Premium models in the height. The latest sales figures show that customers can’t take it anymore. Especially smaller manufacturers, such as Sony and LG represents the end of the boom before real problems. The industry needs to rethink.
The customers have done long ago. Smartphones were a few years ago, still imperfect luxury products, which triggered every year with new Features enthusiasm, you will excitement for a long time. The Smartphone was disenchanted as an everyday object, for the vast majority of customers deep in the pocket want to reach – and it is also no longer need to.
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is already a few years ago a budget Smartphone meant a lot of compromises: Useless camera, lousy operational tempo, poor workmanship. Who wanted a chic and well-to-use device, had to pay for that, too. Who division, soon had to buy new. And even with stainless appliances the successor were due to the constant flow of new features for customers still tempting.
Those days are long gone – much to the Suffering of the manufacturer. Because the development in the last few years had to offer up on a giant displays, and (still) better cameras little to keep the customers your Smartphone is now significantly above the long-usual two-year rhythm also. And because now devices are sufficient under 200 Euro for most customers, they also much less money.
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groaning, The result can be. in the most recent quarter, the industry figures see: With the exception of Huawei all the major manufacturers have lost much of their revenues from the Smartphone business, with market leader Samsung’s sales crashed by over 40 percent, even though more units were sold The clear reason for this: The former sale, the guarantors, the stainless-series Galaxy S and Galaxy Note, they no longer went in the approaches so often over the counter as before.
Similar Figures, other manufacturers supply. During the break-in at the Apple with 12 per cent moderate, but still painful, action LG (almost 30 percent) and Sony (21 percent) with significantly larger losses. Together, especially one of the manufacturers: they put the largest advertising effort in extremely expensive equipment.
there may be two reasons for this: firstly, the manufacturers are trying very hard to get the hard-earned reputation as a Premium brand. After all, nothing is worse for the business, as the perception of being cheap. The elaborate flagship devices also serve to show that We can. On the other, at least some firms are likely to have a Problem with that, the former money printing machines to let go. In contrast to the cheap sector of the Premium range sheds are still significantly higher margins. Just: you have to sell the devices first.
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At duration will remain the manufacturers little choice but to adapt to the changes – and to think the strategy drastically new. Is the about at Apple: The Hardware group for years it has been the Service division. The stated goal: by 2020, 50 billion dollars are to be retracted in the year with services. This was once considered very ambitious current brand is within reach. Just announced in the last three months, with 11 billion with the Service Department can be taken. From the autumn of service, a games subscription and a credit card, additional potential revenue sources with a Streaming.
In the case of Samsung it is, however, another way. After the giant group, limited for Smartphone innovations long on its top, came in last time more and more low-cost models that offered innovative features such as a fold-out camera. In fact, these models were sold very well – brought, however, because of the low price, significantly less money in the cash register.
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get the strategy with cheap phones and works, showed in addition to the Chinese Smartphone brands, also the Nokia-edition. HMD Global, the acquisition of Nokia’s Smartphone licenses from Microsoft, focused on the return of the former mobile phone king’s first full-on entry – level and mid-range models. Later on, the company brought out at all – in comparison, still quite cheap – Premium-models. The strategy is Now HMD is among the ten most important manufacturers in the market, selling more devices than Sony. The psychological advantage of HMD: The brand no longer saw himself as a luxury. To the idea, the other companies will still need to get used to.
sources: Apple, Samsung, LG, Sony, Nokia Mob
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