With Fewer People Buying Cell Phones Are iPhones Hung Up?
This is a summary of the cell phone market for the first quarter in 2016. Some makers are shipping fewer models while others are remaining the same. Apple's iPhone has reported a 16 percent decrease is iPhone sales for the first quarter.
PR9.NET April 30, 2016 - Sales of cell phones have remained the same as last year. Only a 0.2 percent increase or basically the same according to some research. For some companies it's even worse. Apple's iPhone has been a great disappointment and it marks the first quarter in 13 years that Apple's revenue has fallen. The day of the Next Big Thing appears to be over with the Apple 6S selling fewer models than the Apple 6, its predecessor. For the record, wireless consumers are getting a break to keep their phones longer. They do receive a lower monthly bill. This is a great incentive in dollars and cents for the average cell phone user. For Apple this translates into a 16 percent drop in quarterly sales year to year.
Market saturation is one factor to consider. Everyone who needs a phone has one. And all the overlapping apps many users don't even utilize has diminished the "app add on" factor companies have relied on as need to have feature. In many ways, it's like the computer era where every six months new features like added ram or larger hard drive at a lower price, resulted in everyone not only needing to have the latest just use all the latest software that was being created but get a new one but it was more practical. Those halcyon sales days have sinced leveled off and sales have decreased steadily in recent years. But it's not all bad news at least at Samsung.
Samsung has managed to hold on to its market share. Their marketing is much broader in terms of choices. Samsung offers top of the line premium models like the Galaxy S7 as well the the Galaxy J series that are much cheaper and for the average consumer satisfactory. Another potential factor in Samsung's domination is compatible accessories. It's much easier to find charging cables or wireless chargers that work with Samsung than Apple. And Apple's cult status diminishing.
Since Steve Jobs died, Apple's cult is still there but their cell phones have more than enough features to warrant holding onto them rather than trade them in for something new. And the cult of Apple fans is maturing which means Apple needs to create a new cult of iPhone followers using Millenials rather than Babyboomers and add on to their cult like they did with the Mac. Good pricing helps. Though not everyone wants a super premium cell phone, they don't want necessarily a cheap phone either. So a phone with good features and nice price is another factor.
Apple 7 is just around the corner coming this fall. Will the new iPhone have the bells and whistles to get hoards of buyers flocking to Apple for the latest cell phone? It remains to be seen. Cell phone loyalty has been hard to maintain especially with the carrier aspect included. But let's hope Apple has created "The iPhone" that really rocks the industry again and gets people looking at cell phones like it is "The Next Big Thing".
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