Showing posts with label Smartphone Industry. Show all posts
Showing posts with label Smartphone Industry. Show all posts

Thursday, 29 October 2015


With a smarter strategy, Google can change its fate in the mobile hardware industry.

The rivalry between Alphabet Inc. and Apple Inc. is not an unheard phenomenon. Both the tech giants have always given a tough time to one another particularly when it comes to the software segment in the smartphone industry. In terms of operating systems, the Apple iOS and Google Android have been dominating the operating systems domain. The good thing is that Android has actually conquered 70% market share. Since the launch of Google Nexus, it is estimated that the search engine giant is all geared up to give a tough time to Apple’s mobile hardware. Apple at this point needs to come up with it’s a game if it wishes to bounce back the damage which GOOG can cause. Undoubtedly, the Apple iPhone is reigning over the smartphone market where it is considered to be on the top right now. This device is said to be the “breadwinner” for the tech giant. Almost 92% of the profits in the smartphone industry were lured by the latest model of this phone. Moreover, the recent iPhone 6s is doing better and is expected to further beat the sales records during the holiday season making it difficult for other companies to give them a tough time. So this is the point where Google wishes to actually come forward to. The company has been making smartphones since a relatively long span of time. However, they are not associated to the distribution of the devices since they are not retailed at the company’s retail stores but they are sold online only. Moreover, the marketing of the company’s Smartphone is extremely weak. On the other hand, iPhone is marketed with the grandeur it deserves. At this point it seems like the company despite having designed a cumulative hardware and software package similar to Apple, they fail to come up with a strategy that will result in “cannibalization”. So if the tech giant actually starts to promote, market and sell its products then there are high chances that its Android platform will flourish equally. In the times to come it is expected that companies like Samsung will come with its own variant of Android then Google will not really have many outlets to capitalize on. Google can actually give a tough time to Apple provided that it deploys a better marketing strategy that will assist them in establishing the niche of their hardware and software in the industry making it a win situation.

Friday, 17 April 2015

Bidness ETC - Apple Inc (NASDAQ:AAPL) soaring in smartphone market

Apple crossed Samsung smartphone sales; Lenovo, Xiaomi, Huawei attracted market by offering inexpensive sets.

Smartphone sales escalated one billion mark in 2014, Gartner published its report regarding smartphone sales in Q4, 2014 on Tuesday. According to the report Apple Inc. succeeded in controlling the industry whereas SAMSUNG ELECT LTD lost the market hold it reigned over for past 3 years.

According to the report 367.5 million devices made their way to global consumers. Of which Apple sold 75 million smartphones whereas Samsung was able to sell 73 million handsets. The margin does not pose a massive difference in terms of handsets sold however ensures a leap of 0.5 percentage points which turns out to be a game changer for two dominant forces in the smartphone industry.

Apple iPhone 6 has completely changed the game for Apple Inc (NASDAQ:AAPL). The company’s strategy to launch a bigger smartphone proved to be fruitful since the sales of the latest version have been overwhelming.

According to Anshul Gupta, primary research analyst at Gartner, “Samsung continues to struggle to control its falling smartphone share, which was at its highest in the third quarter of 2013. This downward trend shows that Samsung’s share of profitable premium smartphone users has come under significant pressure.”

Apple has not only sold the maximum number of handsets but also banged the steady flow of revenues throughout Q4. According to a report by Strategy Analytics: Apple has governed almost 90% of profits in the smartphone domain in Q4.

Several smartphones makers emerged in 2014 who disrupted the market at a fairly steady pace. Lenovo, Xiaomi and Huawei are one of the few stakeholders who succeeded in attracting the market by offering inexpensive smartphones. These companies also tripled the number of handsets sold in Q4 2013 to Q4 2014. Irrespective of the growth, the three smartphone manufacturers have not been able to sabotage Apple or Samsung’s share accumulatively.

According to Roberta Cozza, the research director at Gartner, “With Apple dominating the premium phone market and the Chinese vendors increasingly offering quality hardware at lower prices, it is through a solid ecosystem of apps, content and services unique to Samsung devices that Samsung can secure more loyalty and longer-term differentiation at the high end of the market.”

However, Samsung has been working on several differentiated projects in order to breathe life into its staggering smartphone market, but this might not prove to be fruitful since Android has a strong hold over the entire smartphone fraternity. Dragging away to a differentiated operating system will further rupture the company, as it will not be able to cater to the needs of smartphone users at such a fast pace.

The smartphone industry has observed a steady growth on a global canvas. Gratner reports, “All regions recorded growth in 2014, except Japan and Western Europe, which recorded decline of 2.8% and 9.1% respectively.”