Smartphone Growth Increasing Even As Consumer Spending Declines - InformationWeek

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Smartphone Growth Increasing Even As Consumer Spending Declines
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SaneIT
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SaneIT,
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1/25/2016 | 8:18:40 AM
Re: The Smartphone
"consumers are realizing they can use their Older smartphones for longer timeframes and so delay new purchases."  This is a similar track that the personal computer followed, I remember a few very excited individuals who HAD to upgrade every at every opportunity and they spent a lot of time watching for emerging technology.  When smartphones hit the mainstream consumer market the same happened, enthusiasts were born and they had to have the latest greatest device while those of us who have been carrying something similar since the days of the Palm Pilot carry a phone until it's literally falling apart or dies completely. 
Ashu001
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Ashu001,
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1/23/2016 | 7:21:50 AM
Re: The Smartphone
Brian,

For a long-long time owning the newest and latest smartphone was a massive status Symbol but when the same phone gets commoditized as most consumers have phones with basically the same feature-set then thinking changes and changes rapidly.

We are very quickly reaching that stage today.

In the case of the iPhone there is also the seperate issue that outside of the US no Carrier provides subsidies to owners of those smartphones which means consumers are less capable of purchasing the same phone(at the same or even higher rates than in the US).

When you are speaking about a country where Average Monthly Salaries are about $500 ;can you expect them to pay those(sometimes even larger) prices just for a smartphone when a $150 phone can do more or less the same stuff???

 

 
Ashu001
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Ashu001,
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1/23/2016 | 7:12:14 AM
Re: The Smartphone
Gary,

Very well put!

The really great thing I have noticed(from observing ordinary consumers) they have also realized that Smartphones are Disposable Assets with barely ANY re-sale value.

You bring a Smartphone out of the Store and it immediately loses 40% of its Value a year later you will struggle to get even half the price you paid for a Smartphone.

I was particularly encouraged by the recent annoucements out of Apple in India.They cut smarphone prices by anywhere between 30%-50% primarily because of dissapointing sales.

If you are tracking the Global Smartphone market then you will realize that India is one of the Large major Growth markets for Smarphones and every major vendor wants a piece of that pie.

Till 2015 ,Apple was spared the massive price-cut expectations in India because it was a niche product but now its become mainstream so Consumers are less willing to spend extra on that product.

Similarly,as the wider Economy continues to stagnate/recede all across most of the Western World and China ;consumers are realizing they can use their Older smartphones for longer timeframes and so delay new purchases.

This is the primary reason why Smarphone sales are stagnating so much.

This is basically the commoditization of Smartphones in play currently.

 

 
Brian.Dean
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Brian.Dean,
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1/22/2016 | 4:30:09 PM
Re: The Smartphone
Great points, there is also the case of the career individual that is looking to take on greater responsibilities. For instance, if a financial manager is expecting to become a CFO then, a smartphone will broadcast to other individuals of the organization that the manager is keeping pace with technology and will be able to understand the dynamics of a cloud deployment -- granted, the two technologies can be distinct.
SaneIT
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SaneIT,
User Rank: Ninja
1/22/2016 | 9:05:37 AM
Re: The Smartphone
I agree that it's a middle ground for most but for those in technical roles it is an investment much like high speed internet access.  If you work in a technical area, chances are there is some expectation that you can perform mid-level tasks at a moment's notice from anywhere.  For the IT crowd this means a solid smartphone and high speed internet access are a must.  For others there is usually some expectation that they can received job related email at any time and respond in a shrinking time frame.  It's not until you get to lower levels of non-technical jobs that there isn't an expectation to have the functions a smartphone provides but there is still an expectation that you can be contacted via phone or text so if the price of a lower end smartphone is the same as the cost of a feature phone why not give yourself the extra tools?  We're in a world of growing connectivity expectations and for many of us a smartphone is as important to our work as a way to get there.
Gary_EL
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Gary_EL,
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1/21/2016 | 2:29:27 AM
Re: The Smartphone
Smartphones exists in that middle zone between investment and consumption. It's investment because most people need to communicate in the course of their work, and it's consumption because some of the time we use the device for fun. There will always be folks who want the newest and the best, but smartphones are beginning to become commodities like PC's before them. The devices are well ensconced into our commercial and social lives. Organizations of every imaginable kind are striving to adapt their offerings to the capability of current smartphones, and they are the ones who may take the next big steps.
Brian.Dean
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Brian.Dean,
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1/20/2016 | 11:09:35 PM
The Smartphone
A few reports have stated that smartphone penetration rates have crossed 70%. While, individual users are different i.e. some might view their smartphone as consumption expenditure, others might view their smartphone as an investment as it helps to increase their productivity. I wonder if on aggregate, the +70% will lean towards the consumption side of the equation or the majority will feel that their smartphone is an investment.
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