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So we just stumbled upon this report that may seem aloof to the world but it’s not. Gartner’s latest research for the mobile industry revealed that growth in smartphone sales is likely to fall to a single digit which is half the rate it was in the year 2015. This report has come as a sheer warning to many mobile manufacturers.
While it may sound a little too early to predict the downfall of the mobile industry to many, but considering LG only made 1.2 cents in profit for each phone sold last year, there sure is a clear indication that you need to look for other options within your business before you are wiped out. It is because in the situation of LG, you can tell that in order to actually earn profits that matter to the company, a large number of phones need to be sold.
So what/who is really taking away the market share?
China has been the beacon of hope for struggling companies in US and Europe until the overall smartphone market got hit by local Chinese players, Huawei and Xiaomi, that were as good as any other smartphone company. A well-planned move by Chinese as they came out of the disguise of mere manufacturers for others.
There has been an outcry lately that businesses need to take advantage of the smartphones but all of that is now questionable: For how long will the impact last?
If you are into a smartphone business or looking forward to get your hands on it sometime in the future, here’s how you can benefit yourself and the world from the current situation:
Jump in to make way
A wise entrepreneur, especially the one who has just started off his/her very own small business, will understand that entering the complex and competitive phone business is quite a challenge. However, once you are in, it will be quite a relief to know that some of the major, established players are on to exiting the market. One such company is already struggling as a result of Chinese competition. It won’t be long until some other major giants will report financial loss.
Go for Budgeted Phones
Another key takeaway for the mobile business is that this is the time for budgeted phones, considering how they are currently tipping masses off their balance. As the market has become saturated, thanks to inexpensive smartphones taking over the rest of the world, it is the target audience who are really making it happen. Listen to their demands and act accordingly.
Team up with local players
In order to appeal to the affluent customers, team up with some of the top-notch local players who are consuming the local market share. Many of the giant smartphone players in the business are losing the share to local players and struggling to barely make enough to survive, for instance LG and HTC. Leverage the situation and plan your maneuver efficiently.
According to Gartner’s report, at least one of the nontraditional phone maker, possibly from China, could land somewhere in the top five players by the year 2018. It is no more an argument as you are seeing it coming. Plan now to advance, before competitors do so, and it would be you leading the way.