The article points out that mobile phone sales worldwide declined in 2012 by 1.7% due in large part to ‘tough economic conditions, shifting consumer preferences and intense market competition.’ While world-wide phone sales were down 1.7% from 2011 sales, sales of smartphones in the fourth quarter of 2012 were up 38.3% over Q4 2011.
Apple and Samsung continue to increase their market share… from 46.4% to 52% comparing Q3 2011 to Q4 2011. Apple and Samsung, the article points out, have great success based on their brand recognition and reputation… their success is as much due to brand recognition as due to the quality of their actual products. In an economy where most people do not have a great deal of disposable income, customers who are loyal to Apple of Samsung will still pay the premium price for their products as opposed to customers of other companies who may be less loyal and may opt for a cheaper product.
I’m interested to watch what happens as the market becomes more mature and more highly saturated with smartphone users. Additionally, it will be interesting to see in what direction the industry heads as the economy grows stronger and individual disposable income increases.
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