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China is potentially in the ‘eye of the storm’ as component prices rise. This will force its manufacturers to raise their prices – just as the Strait of Hormuz closure forces consumers to cutback spending.
Strait of Hormuz closure adds to smartphone downturn Read More
Today’s key issue is that we are seeing the end of the ‘middle market’. We are now returning to a world where companies compete on Value or Luxury. The highly profitable middle market of ‘affordable luxury’ is disappearing.
iPhone captures Luxury market whilst Samsung’s Galaxy competes with low-cost Value players Read More
The smartphone market highlights how consumers are refocusing on ‘value for money’. Sales are falling as people hold onto their phones for longer. And more people are now happy to buy a cheaper used model.
Smartphone sales confirm that ‘value for money’ is starting to drive consumer demand Read More
Q1 data showed that many consumers are tightening their belts and focusing on value for money. But investors don’t yet seem to have noticed, and are still bidding up Apple’s share price to euphoric levels.
Smartphone sales continue to slow as consumer demand patterns change Read More
These changes in demand patterns are not just impacting Apple and the smartphone market. They are already impacting suppliers to the market. And they are also starting to impact a vast range of other major consumer markets.
Used smartphones take 21% of global sales; Samsung declines as middle market disappears Read More
The smartphone market highlights how companies are responding very differently to the economic slowdown. Samsung is adding features such as ‘foldables’. But Apple is building services business to provide annuity revenue for the future.
Q3 smartphone market confirms need to build Services revenue as consumer sales slow Read More
The downturn in the global smartphone market highlights the need for companies to focus on the Value segment and Services as the Middle Market disappears. iPhones are now 49% of the booming second-hand market, allowing Apple to gain more Services revenue via its App Store.
Smartphone decline highlights the end of the profitable BabyBoomer-led ‘middle-market’ Read More
Cheap used phones priced at <$200 are now the only growth area in the smartphone market. Companies who just sell hardware are now set to be Losers as their profits tumble. Companies like Apple, with a strong brand and service offering, will be long-term Winners.
Smartphone sales hit new low as world moves into its first “demand recession” Read More
Apple symbolises the major changes underway in the economy. Its stock price is in decline as central bank stimulus disappears. And its profits are threatened as pressure builds on its supply chain and pricing.
Apple’s China problems highlight smartphone market downturn Read More
Consumers around the world are tightening their purses and cutting back on non-essentials as the impact of the 4 Horsemen of the Apocalypse – Covid, the war, food shortages and rising interest rates – increases.
Smartphone sales go ex-growth as consumers cut back Read More
The market downturn couldn’t have come at a worse time for Apple. It was already facing major supply chain chaos in Q2. And now it has to face a major decline in the smartphone market itself. Inevitably this will lead to a brutal battle for market share as companies struggle to survive.
Smartphone sales set to tumble as China’s lockdowns continue Read More
Two core trends are playing out in the smartphone market, now it has gone ex-growth. The weaker players are suffering major hits to their revenue and profits. And the most successful company, Apple, is busy accelerating its move into the more service-based markets of the future.
Apple still takes 75% of smartphone profits, due to its domination of the value chain. But other industries have been rather slow to learn the lessons from its success.
Smartphone sales decline highlights need to move to a more service-based business model Read More