Helping you navigate the new normal since 2001
Smartphone markets are essentially acting as the ‘canary in the coalmine’, warning us that the global economy is still only at the start of suffering a major shock.
Hormuz crisis, memory-chip costs, will reshape the smartphone market 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
Smartphones highlight major shifts underway in consumer markets. The cost of living crisis means people are only buying what they “need”, and cutting back on what they only “want”. And today’s ageing populations mean there are fewer young people to make their “first purchase”.
Apple loses its Top 5 position in China as price competition intensifies 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 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
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