60 new smartphones released in 3 months: the market and consumers on the verge of indigestion? July 15, 2020 – Posted in: Smartphone news
The global smartphone market may be idle, but that doesn’t seem to deter manufacturers from pursuing a scorched earth strategy. According to our colleagues from the Android Authority site, at least 60 “major” devices have been revealed since the start of 2019, barely a quarter. An estimate which naturally confirms the overwhelming dominance of Android, but above all the rise of Chinese manufacturers with the logic of volume and ultra reduced margin. Does the smartphone market risk a liver attack?
Chinese manufacturers at work
Huawei, Oppo, Lenovo, Vivo, ZTE, Xiaomi, TCL, the list of contenders for the throne of the biggest terminal seller is long. It must be said that despite a 4.1% drop in sales in 2018, the sector still represents 1.4 billion devices according to IDC. Behind Samsung (292 million sales) and Apple (209 million sales), Huawei made a notable breakthrough with 206 million devices sold. The objective for 2019 is therefore to transform the test. To do this, the most common commercial strategy consists in multiplying the references and flooding the market. Samsung has become the industry leader by adopting this tactic, Huawei intends to do the same. We also note that in this list of 60 new smartphones released in 3 months, about 50% of the terminals belong to Chinese manufacturers.
A competition that will do damage
On the consumer side, there is both positive and negative. Global competition has improved the quality / price ratio of the devices. Now, many high-performance smartphones are offered for less than 200 euros. However, it is increasingly difficult to navigate and high-end devices have seen their prices soar – so precisely to stand out and regain the margin. As for manufacturers, with this volume strategy the question of profitability will quickly arise. Aside from Apple, which accounts for around 60% of industry profits and, to a lesser extent, Samsung with 17% of profits, other manufacturers only collect crumbs – less than 5% for OPPO, Vivo or Xiaomi in Q2 2018, according to Counterpoint . It would not be surprising if some players left their feathers in this strategy.