A report suggests that companies will have to change their marketing strategy to stay competitive.
Smart phones, the “smartphones” low-end, ie, those with prices below $ 150 in the U.S. , will become a huge market share in 2017 and will represent 52% of phones sold. This is what the latest study says Informa Telecoms & Media .
According to this report, the market for smart phones is experiencing strong demand changes and is increasingly polarized. This means, onehalf of the population opts for expensive phones and the otheraffordable devices for emerging markets. Following this overview, Informa Telecoms & Media estimates that competition will become more intense with the price erosion.
A “smartphone” in the U.S. average will rise from $ 188 in 2011 cost about $ 152 in 2017 as a result of a “balance” in demand in emerging markets. The growth of the mobile sector is expected to reach between 20 or 25%, since manufacturers will be under pressure to absorb the costs of innovation in order to remain on the market at competitive prices.
“As the market develops, the supply chain is increasingly divided into two camps. The innovators who will continue to introduce new features and high performance components, and those who take this innovation to the mass market but in later years “, said Malik Saadi, principal analyst at Informa Telecoms & Media. In a news release.
These changes, raises this company, the manufacturers will have to rethink their position in these new environments to be more effective in their marketing strategies.
Only a few manufacturers have the ability to run right across the market, the vast majority will have to focus on particular segments to reduce costs and maximize margins.
They believe that very few companies will be able to stay out of this new situation. Nokia, RIM, LG, HTC, Motorola and even Sony will struggle to adapt to this situation and therefore will have to make strategic decisions to enter the fray of high-end phones, which until now has been dominated by Samsung and Apple . But they also face stiff competition in the field of low-end phones, a sector dominated by Chinese companies.