Smartphone Saturation Becomes OEM Conundrum
Did you camp out overnight to buy the new iPhone? Did you rush to upgrade your Samsung Galaxy? The chances are that this year you didn’t. Phone sales are slowing and it’s worth exploring why this might be a long-term trend. It’s possible we are at “peak-phone.”
Phones are generally part of our way of life now. No self-respecting teenager is without one, and they are the businessman’s (and soccer mum’s) most valuable tool. Most of us can’t remember life before the cell-phone.
Our somewhat irrational desire for more and better led us to replacing the phone every two years. Telco contracts even encouraged that, with no replacement fee for a two-year old phone. All the hype and fireworks around Apple’s biennial release of a new model drove the market. The phone makers loved it, especially Apple, who had translated their brand name into a substantially higher price.
Sadly, the days of massive improvements in features in a new release are behind us. Just think about some of the recently boasted new features on phones: rounded corners on screen icons, a phone that is is ½ mm thinner, or a gold-colored case.
The reality is that phone features are about capped out. There isn’t a whole lot more they can do. Moreover, everything Apple can do, Android does too! (A secret here: It was never the hardware that mattered. It was always software, and the only reason for a hardware upgrade was to get the new software features and perhaps to have enough memory to run them.)
Meanwhile, phones have been getting tougher. Gorilla glass or a layer of sapphire protects the screen, and today’s phones can take a lot more abuse than early flip-phones and smart-phones (no more thumb-balls to jam up!) Even their greatest vulnerability, immersion, has been addressed by Samsung in the Galaxy 6. Add this to the slowdown in delivery of meaningful features and the picture becomes one of longer useful life and replacement only when it breaks.