Economic activity in the world has almost stopped due to well-known events and the prospects for both recession and production are no longer just looming. They are clearly visible and distinct. Of course, as with any crisis, not everyone will suffer. Either the one who comes out with a new proposal, which will be in the spirit of the times, or the one who can successfully adapt, will survive. Simply put, the market will shake up very seriously and it can change very much. This applies globally to the entire market for goods and services. But what will happen to its small part in the form of the smartphone market? Will she be able to get through the storm with minimal loss, or will she never be the same again? And in general, should it remain the same or, perhaps, it was necessary to change something for a long time and without a crisis.
Smartphone manufacturers will have a tough time in the current environment.
The smartphone market depends not only on global turmoil. Due to the peculiarities of this market, supplies periodically decrease, or, on the contrary, it becomes oversaturated, but then something changes and the movement starts anew. The frequency of such changes is difficult to predict, since it depends on various factors, but now we are again on the verge of such a period.
Why new phones don't come out
One of the main reasons for the drop in smartphone shipments is that people are using their old devices for longer. The days of updating our phones every two years are slowly fading away. I even wrote a separate material on this topic and the readers agreed with me.
The lack of innovation in the industry can be clearly traced. This is no longer covered by any folding smartphones. As a result, users decide to stay with their old smartphones instead of buying something new. Everything new that we were offered either breaks (folding smartphones), or does not work everywhere (fifth generation networks). But no, manufacturers, like fanatics, try to continue to hammer at this point, believing that there is enough innovation for one decade. Both clamshells and 5G need to be developed, but let's think about what else we can offer to the smartphone market.
Evidence that we urgently need a change is that Apple can already afford to re-release a 2.5-year-old smartphone with a new processor, and this is making a splash. Even the Home button on the half of the case does not cause rejection. I am not even being ironic, as I increasingly think this smartphone is cool and have already spoken about it more than once.
You won't have to choose a new smartphone from the flagships. They may soon be gone.
In any case, its main feature is its price, which is very attractive and shows that even in this version, the gadget can cost $ 400, and if not tear, but tear competitors.
An additional factor in the decline in consumer interest in new technology is supply chain disruptions caused by the coronavirus pandemic and the fact that the whole world is sitting at home. Global smartphone shipments are forecast to decline to 15 percent this year alone. Especially those companies that are already weakened will suffer from this. Only real innovation can save the day, but this is money and risk, and the market is now already associated with risk. As a result, everyone is afraid of losing everything by betting on the rise. For many years the entire market has been working according to the principle “do as everyone else and, at least, you will not lose to them”.
Mobile market changes
Many companies are trying to restructure somehow. For example, just a couple of weeks after the release of the more expensive OnePlus 8 Pro, the manufacturer decided to close some of its offices in Europe. The changes also affected Google, which changed its mind about hiring 20,000 employees.
If we talk about smartphones, then many have pushed forward this year. OnePlus got to the $ 1000 mark and began to cost more than iPhone more than twice, just like in the meme “somewhere in a parallel universe”. Xiaomi went there with my Mi 10 Pro, and Motorola this is just another fakap. They released their Edge + for $ 1000 and in the same year such shocks. Of course, no one knew that this would be the case when it was being developed, but this state of affairs draws on an application for the Loser of the Year nomination.
Most of all, in modern realities, manufacturers of relatively inexpensive devices will benefit.
On the other hand, medium-sized producers, who have not yet raised their withers to $ 1000, can still live quite well. Realme, Vivo and Oppo can thrive in a new world order. Now Vivo sells more smartphones in India than Samsung, but it is not well known in the rest of the world yet. In Russia, it seems to me, he was recognized only after he became a sponsor of the 2018 FIFA World Cup. Although, the brand has many innovations, including the first smartphone with a sliding camera and a prototype battery that charges in 12 minutes.
In the new reality, the process of selling smartphones has also changed. The seller can no longer persuade to buy something specific in personal communication in the store. Customers sit at the computer and make their own choices, paying attention to low prices, not design or brand. In the store, it is not so convenient to sort the goods – thanks to the filters of online stores.
What will happen to phones next
You don't need to be a cool analyst to understand that people will always need smartphones – they will not give up the connection they are used to. It's like toilets or kettles, forgive the comparison, but people will always buy them.
It is difficult to say how everything will look when the crisis is over, but one thing is clear – manufacturers will be divided into two camps. Some will make affordable devices, while others will be technological. The winner is the one who can sit on both of these chairs. Times are changing and we need to somehow adjust to them. This is the only way to stay afloat, not as something that does not sink, but as a powerful flagship frigate of the market.