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Smartphone Buyer Fatigue Hampering Growth
January 12, 2016 by admin
Filed under Smartphones
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Apple and Samsung dominate global smartphone markets with several new flagship handsets unveiled each year.
But after years of fantastic growth in smartphone sales, the pace of growth is slowing overall, including for the two smartphone giants. Market research firm IDC recently said that 2016 will be the first year that overall smartphone growth will slow to below 10%.
There is even talk among analysts that the latest models don’t have enough compelling new features to lure customers to a competitor’s device. Others say smartphone buyer’s fatigue has set in.
Buyer’s fatigue is a concern in the U.S. and other developed countries where the smartphone market is viewed as a “replacement” market because the market is already saturated: Nearly everyone already owns a smartphone. A focus on emerging countries by Apple and Samsung still requires them to find low-cost alternatives to compete with the likes of Huawei and others.
“Consumers are fatigued about new phone features that they can’t easily relate to any improvement in their personal use cases,” said Patrick Moorhead, an analyst at Moore Insights & Strategy. “Samsung has been one of the worst offenders of this in the last few years. If consumers can’t relate, then they need to be educated.”
Most recently, reports that Samsung would add a pressure-sensitive displayand high-speed charging port to its Galaxy S7 phone drew a few yawns. That’s because Apple added the pressure-sensitive display to the iPhone 6S last summer, and a new USB Type-C fast charging port is already available in LG and Huawei smartphones.
While it is to Samsung’s advantage to keep up with Apple and others rivals, analysts disagree over whether these latest improvements will provoke an iPhone user to switch to a Galaxy.
Source-http://www.thegurureview.net/mobile-category/smartphone-buyer-fatigue-seen-hampering-growth.html
HTC To Go High-End
August 18, 2015 by admin
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Taiwanese smartphone maker HTC Corp said it will eliminate some jobs and discontinue models as part of its strategy to focus on high-end devices to better compete with the likes of AppleInc and Samsung Electronics.
“The cuts will be across the board,” Chief Financial Officer Chialin Chang told reporters after HTC reported a second-quarter loss and forecast another for the third-quarter. “They will be significant.”
Chang said the cost reductions would extend to the first quarter of next year, but declined to give further details.
A pioneer in early smartphones, HTC has been dismissed by industry watchers as confused, unoriginal and uncompetitive.
The company has been losing market share over the past few years, hit by intense competition at the high-end of the market from the likes of Apple and Samsung Electronics while budget Chinese rivals have also eclipsed its low-cost offerings.
HTC shares have fallen 51 percent so far this year. The stock closed 1.69 percent lower before the results were announced.
Chang said HTC was banking on selling high-end models in emerging smartphone markets such as India, where he said the company has a 20 percent market share of phones priced between $250-$400.
Analysts, however, are less optimistic, saying HTC is likely to continue to struggle for the next four quarters at least.
“We believe HTC will keep losing share in the smartphone market and will keep losing money,” analyst Calvin Huang with Taiwan’s SinoPac Securities wrote in a recent research note.
AMD To Slash A 10th Of Its Workforce
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Advanced Micro Devices Inc revealed a plan on Thursday to save about $200 million of operating costs in 2012 by cutting 10 percent of its global workforce and streamlining internal business processes.
The layoffs mark the first major move by Chief Executive Rory Read, who took the helm in August to try to galvanize a microprocessor maker that has bled market share to larger rival Intel Corp, while missing out on the mobile device boom.
“It’s not too surprising given the operating background of the new CEO and this is exactly what you’d bring an outsider in to do, but their problems go far deeper right now,” said Alex Gauna, an analyst at JMP Securities.
The layoffs should be completed in 2012′s first quarter, AMD said in a statement. Savings generated could help bankroll research and expansion into areas such as low-power chips, emerging markets and cloud computing next year.
In late September AMD, a distant second to Intel in selling microprocessors that are the brains of PCs, warned of manufacturing problems manufacturing it new 32 nanometer Llano chips as well as older 45 nanometer chips.