Inthe current world, technological development has made changes in thelives of people. The communication industry has moved from thelandline systems and today the mobile technology network systems aretaking over. More changes such as the use of Wi-Fi in a phone’snetwork that has prompted many production companies to change andventure in the manufacturing of products capable of exhausting theavailed resources. s are among the significant changes thatmany industries started producing with efforts to meet the customer`sdemands and preferences. The previous phones present in the marketnever had most of the improved pieces that are presently providedsuch as storage chips and cameras of high quality that have beenconsidered to accompany smartphone production.
Isthere a market for a genuinely innovative kind of smartphone, or aresmartphones already as good as most customers will ever need them tobe?
Anynew type of product produced has no guaranteed market as seen fromthe excerpt the LG Company reported an exchange loss even afterlaunching one of their smartphones that they produced. Similarly, theApple Inc. also suffered the same recording a fall in the period ofthirteen years which then have always enjoyed massive profits. Sinceevery individual today in the world, be it developed or developingnations is having the joy to at least these devices with or withoutexact preference, it has affected the marketability of certainproducts. The markets are flooded with so many smartphones, and theproduction companies are said to be pumping more products into themarket. The reported mistake made by producers is the fact that theyover-estimate the demand and thus, flooding markets with productswhich end up dropping the sales and thus, loss are incurred.
Anotherreason for the probability of having a greater market for the devicesis that smartphones are never good as customers need them to be. Theurge to have a new product with the most updated camera systems,largest storage mechanism, and excellent workability has been apropelling factor for providing the market for new devices. Forinstance, provision of storage chips for the new Samsung phones inthe market helped them get more consumers and also beat itscompetitors. Customers expect a new product and therefore, we canlearn that they are satisfied with what is available, and Samsungreports lack of a new flagship might just make them lose theircustomers.
Followingthe growth of competition in the industry, market for new otherdevices is facing trouble and is closer to none in the recent past.Since many people have acquired smartphones and thus, they do notseem to seek another smartphone in the long run as the older onesstill exist and functions. We are told in the article that overloadof the phones in developed nation has created a stiff competition,and the weaker industries fall out of the market while the revenuesfor the largest competitors keep shrinking due to lesser sales in thelong run.
Onthe contrary, there exists a market for any newly invented devices.Some of the leading producers such Apple Inc. have always been in thelead and known for producing the most recent and modernizedsmartphones this has kept them dominating the market with leadingsales of any new devices manufactured. A good example is the salesthey made from Galaxy S6 devices all over the globe and later madegreater profits with the introduction of the Galaxy S7. This is realproof that market is available for the products. The marketavailability still faces challenges since the most established soukshappened in the nations with developed technology infrastructure andgood economic stands such as China, United States, and the MiddleEast countries.
Whatsymptoms are there of maturation in the smartphone industry?
Startinga smartphone industry today is riskier than before due to the manyavailable manufacturers with well-established brands and markets.Well, a company in the smartphone dealing may kick off well, but forit to reach its peak in product and service delivery, many funds arerequired to challenge its rivals and stay in the souk. Competition,therefore, becomes a major symptom for any company planning to hitits highest target. Older companies such as Apple Inc. in thesmartphone business have established themselves so well, and theywould always act against any newcomers. They have determined acomplete origination and advancement in their products which givethem an upper hand over luring customers than the newer and weakerparties.
Technologicaladvancements are challenging smaller industries and making themsuffer more in pursuit of their success. Expensive innovations arewhat customers need to see the advanced products and the resources tofund the developments proof scarce for the weaker companies makingthem vulnerable to immaturity. The bigger industries such as Samsungdo not complain much but, from the report in the paper, we learn ofSony, who harshly had to face the wrath of technology venturing thisyear. They launched the production of image sensor smartphones butlater got shorter in profits when they failed to make anyimprovements the following year and recorded an operational loss of¥28.6 billion after enjoying a staggering ¥89 billion profit theprevious year.
Whatwould you advise smartphone makers to do? Should they try torejuvenate the smartphone business? Should they diversify into newproduct areas? Can they do both at the same time?
Thesmartphone industry is facing a collapsing risk but, I still feelmore is yet to be done and if the new strategies like the followingwould be implemented then more survival would be noticed. Forinstance, merging and acquisitions are one of the best technique touse and improve the smartphone industry. Bigger companies, unlike thesmaller ones, have the capabilities regarding financial strengthwhich would help them buy and merge with the smaller smartphonecompanies. This would enable them to seek and access newergeographical locations and markets. Success globally would requirethem to attract their customers, and it would improve the incomesfrom the international markets rather than the regional existencesonly. Another importance of the merge is that there will be access toexciting technologies with support from other financing firms wouldgive the smaller industries chances to afford significant discoveriesneeded by customers in the product creations, and that would improvetheir marketability. Lastly, the acquisition of businesses would leadto vertical integration regarding sharing raw materials.
Diversifyinginto new products would mean that all the older ones are retrievedfrom consumers just like Apple does. But this has never been metworldwide since the markets are only stronger in specific regions. Itis, therefore, a plus if they can both invent new products andre-evolve the industry of smartphone production.
Insummary, the smartphone business is not dead as such but only facingsome transitions. Investors need to get more products into thecurrent markets the products show to coincide with the customers’needs. To best arrive at such capabilities markets research should bedone by the specific companies to find out the advancements that manyconsumers would consider before they mold newer devices which mightface consumer rejection. Innovation should be considered as thebuilding blocks over which any success requires its support to movethe smartphone industry miles ahead.
Lee, J. C.-J. (2016). Earnings Reports this Week may Toll the Bell for a Decade-Long Bonanza. Wall Street Journal.