The Smartphone Market Today: Rising Demands and Low Demand | Hi-Tech

The Smartphone Market Today: Rising Demands and Low Demand - Hi-Tech - -
The Smartphone Market Today: Rising Demands and Low Demand - Hi-Tech - -

A few days ago we saw how from HTC issued a statement correcting the balance sheet forecast for the second quarter of 2015 to show even lower figures. Today we get more corrections, this time on sales forecasts as to the electronics market (computers, tablets and smartphones), by Gartner, which calculate a lower market growth over last quarter.

The company estimates for this 2015 growth of 1.5% over 2014, 1.3% less compared to the previous forecast. If we talk only of the forecast in sales of smartphones, Gartner speak of a decline to 3.3% from last year, although in terms of the divisions of devices is the biggest difference for tablets, with a forecast of 5.9%. What might be the determining factors for this situation?


There is also no green shoots in technology

The smartphone is a product that, according to their characteristics and price, dances between need and whim. With the difficult economic situation worldwide with prices continue to rise, having established a line of up to 700 € for the high end, you would not expect sales growth, or at least no new terminals.

The trade in second-hand and plans of the operators also play against. Existing terminals (including the latest) at prices even 30% lower than new and in good condition as well as the option to pay a new one for a small amount per month, the potential customer is more affordable options that will report him a Similarly satisfaction with less investment.

China: an engine idling

A few days ago we talked about the low demand we are seeing in China, a fact that seemed to figures distributed terminals that Xiaomi and other brands presented, showing stagnation. According to IDC, the market of the country has experienced the first decline in a period of six years, which is 4% over the previous year and 8% as regards the previous quarter.

These figures, along with the fact that Apple snatched up pole to Samsung in terms of sales in the country, points out that there is a change in the needs and demands of Chinese customers, which have pointed IDC analysts and other sources. According to Annette Zimmermann, Gartner, manufacturers would have to opt for premium features to attract customers to this sector and increase the number of new sales.

These ideas are based on the fact that Apple phones have excelled in a country where until now sold as affordable. And this, in practice, has been a negative for other manufacturers, such as Samsung badly strained, with sales in China fell 53% from last year, followed by a Lenovo which recorded 22% less.

Units sold in China

2015: The year of mediocrity

It is increasingly difficult to highlight the technological level that smartphones have achieved today, with more powerful cameras on building better terminals, equipped with increasingly sensitive sensors and all driven by microprocessors generally perform better by consuming less. And maybe this certain technological ceiling facing is affecting demand.

And not only that the potential customer may have accustomed to features like fingerprint readers, resolution or megapixels, but the B-side specifications flashier (premium or not) while achieving improved aspects of hardware as above, other features such as autonomy seem to have been resentful, affecting the final decision not to purchase the terminal fearing not be satisfied in these areas.

Even at the high end we find a clear winner, but a fleet of insignia on

Even at the high end we find a clear winner, but a fleet of flagship relative. The HTC One M9 becomes the goal that many analysts say as guilty of the latest economic results of the mark by not meet the expected demand behind this launch as in other years. The manufacturer seems to be successful in his bid for the continuity and a processor whose first results intimidated to potential buyers.

Benefits not reach the expected Samsung, apparently because of production problems of its flagships Galaxy S6 and S6 Edge, a terminal that represents a gamble given his particular design and could not have caused the demand expected by the Koreans, that despite refocus their designs to a more premium build on this and other ranges, see as Apple continues to gain ground them.

What it is to come

In this situation of apparent demand, it remains to be seen whether the releases that remain present in the second half of 2015 achieved this situation to change over the coming months. For now, manufacturers seeking to enhance its sales in the medium term to explore new markets (such as Xiaomi Brazil), hereinafter see if manufacturers fail to redirect their strategies and customer care recapture willing to invest, and re-boost demand.