The smartphone market may appear to be a very profit making one. After all, the unveiling of a new product whips consumers into a frenzy, as evidenced by news articles showing people queuing up upto 2 days in advance to be the first to get their hands on the latest technology.
However, the recent earnings published by powerhouses such as HTC and Samsung suggest otherwise, as their earnings estimates for the quarter have failed to match up to investor estimates. HTC and Samsung make some of the most popular smartphones in the market today, with their products gaining wide acclaim, so how is it possible that they have failed to impress with their earnings? The problem is not with their product, but with the overly saturated smartphone market. How has the smartphone market become so saturated?
-Consumer spending power is down and as a result, more consumers are sticking with their current model or looking at cheaper offerings from rival brands, thus causing estimated sales figures to drop considerably.
-The market is already flooded with every type of smartphone imaginable. There is everything from a phablet, which is a phone and tablet hybrid, to the fastest phone in the world available to purchase. Thus it is harder for companies to bring out new and even more innovative products, and anything that they do produce has a hard time standing out from the crowd. First movers in the market such as Apple, are also finding it harder to differentiate their product.
So what can these companies do that will make them stand out from the crowd and enable them to reach targeted earnings?
–Choose the right niche
These companies need to step back and identify their core strengths. Gimmicky products such as smart glasses and smart watches will not last long in the market and will certainly not be able to drive up the dwindling earnings. The key right now is to identify the gap in the market that needs filling, and has not been fulfilled by the spectrum of smartphones already.
–Stick to your word
Consumers will fast see through false claims so it is important to not market the product by making fanciful assertions. If you say that you are the ‘first’ or the ‘fastest’ make sure your product can live up to its marketing, or you will soon find that you are losing your customer’s loyalty.
–Not be overwhelmed by competition
Although it is an uncertain time for smartphone businesses, it is important for them to keep their cool and not let competitor pressure get to them. They need to stick to their goals and not be sucked in by the competitions business moves. The focus should be on quality and not lowering standards to drive down costs. Cutting corners may yield temporary results but will only hurt in the long run.
Marketing is one of the most crucial tools a business can possess, and when done right, it will take a business to unforeseen highs. Smartphone makers need to educate their customers and call their attention to their new product and its features, which customers might not be aware of. Marketing campaigns need to be full of information and inform customers just why your product is better than the rest.