Different vendors have come up with diverse strategies to grow in a year of slowdown
Different vendors have come up with diverse strategies to grow in a year of slowdown
When something like the recession hits us, in the initial instance we tend to go into denial. What recession, we ask. When things get worse, we agree and say, ok, there is a recession, but it won't affect us. Only when the recession deepens do we try to innovate. And right now, the recession is bad for mobile phone makers according to IDC, in OND 2008, vendors shipped a total of 289 million units, 12.6 per cent lower than the 330.8 million units shipped during OND 2007.
So, what are mobile vendors doing to get out of this mess? A look at the major news today concerning mobile phones is interesting because it shows what different people are thinking and doing. After a basic study, it is clear that people are banking on one of three different thingsu2014the high-end route, which concerns premium phones, the low-end route of budget phones, and finally, data services.
Flying high
Some companies like Sony Ericsson are taking the high end route. Not only has this company announced an 8 mega pixel camera phone, it is also bundling it with an unlimited movie download service for mobile phones.
Apart from this, in the second half of 2009, the company wants to launch a 12 mega pixel camera phone model codenamed Idou.
While some may see this as foolish, this company may be congratulated for taking bold steps in a recession year. The bundling of movies is particularly interesting because during a slowdown, luxuries like watching movies in fancy malls face a cut-back, and so people may ask, why not watch something on the mobile, particularly while you are not close to your TV?
Get the low-end
If Sony Ericsson is taking the high-end route, LG is looking at low-cost mobiles. Not only this, LG also wants to grow its global market share to at least 10 per cent and plans to sell more than 100 million handsets this year. This is really ambitious because LG now has some 8.5 per cent of the world market.
The plan actually seems audacious when you look at the fact that Nokia has announced a cut in production at its Salo plant in Finland. More disturbing is the fact that Nokia plans to cut down on research by closing a research site in a Finnish town called Jyvaskyla. But, all said and done, LG's plan may work because people who want to tighten their belts until the economy recovers may not want to splurge on a high-end phone. This is a year when you have to worry about bread and butter, and nobody cares if you don't get to eat jam.
Data to the rescue
But while things seem bleak on the mobile market, there is reason to cheer for some people namely, those who are involved with content on mobiles. According to a survey conducted by The Nielsen Company involving 50,000 consumers in Britain, France, Italy, Germany, Spain and the US, more than half of those who already use mobile data expect to use it more often in the next two years. The survey, which was commissioned by Tellabs, was conducted in November, when things were not as bad as they are now, so we don't know if people are still interested in mobile data.
But while companies come up with strategies, consumer buying patterns will determine if the companies are right or not. Will people buy high-end phones or low-end ones? Will they go in for data services, or will they decide to wait? The answer to questions like this will help us to move out of the recession that much faster. And while we don't have these solutions yet, it is nice to see mobile companies pushing hard to find them.
QUICK TAKE
>>Companies have different strategies for mobile phones
>>While companies have clear plans, consumers will determine success
>>But it is nice to see companies trying so hard to crack a bad market
ADVERTISEMENT
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
