Saturation of smart market…Manufacturing companies to find solution by line up reinforcement
Kim Ji Yeong | kjy@ | 2017-08-01 10:36:29
Smartphone industry and their survival strategy…
It is difficult to expect continuous growth in demand as the smartphone market is mature. In the second half of the year, major smartphone makers in Korea and overseas are struggling to secure market dominance by diversifying product line-up and expanding distribution network.
According to the industry sources on July 31, as the market is maturing due to the increase in smartphone penetration rate, major handset makers in Korea and abroad are struggling to win users` strategy cards. According to Gartner, a global market research firm, the global device market forecast for 2017, which was released in July, smartphone shipments are expected to reach 1.6 billion units this year, just 5% higher than last year. Korean smartphone penetration rate is close to 91%.
Samsung Electronics, which recorded an operating profit of KRW 460 billion in the second quarter of this year, emphasizes `smartphone line efficiency`. The company plans to launch various smartphone models from premium (high-end) to low-end (low-end) products. The company has recently launched Galaxy J7 with KRW 390,000 and Galaxy A7 with KRW 580,000. It will be a strategy to defend the gap between the launch of the premium Galaxy S8 and Note 8 with a mid to low-end line. Currently, Samsung`s smartphones are composed of low-priced Galaxy J, mid-priced Galaxy A and high-priced Galaxy S series.
Meanwhile, connectivity between products is also strengthening. It is aiming to expand market compatibility with popular products and its products. Gear S3, Gear VR, and the like can be actively used with smartphones.
LG Electronics is expected to focus on boosting its lineup of family models for the smartphone G6 launched in March and Q8 sales. Last month, the company launched G6 Pro and G6 + family models in succession. The company plans to make the product family a steady selling product.
Meanwhile, Q6 and Q8, priced at KRW 400,000-500,000, will be released in August, and mid-low-end phones are expected to catch up. Both products are equipped with almost the same specifications as the LG V20 strategic phone launched last year. In addition, marketing of V30 (tentative name), which is scheduled to open in August, will also be aggressively developed.
Also, Apple plans to diversify its iPhone into a general model and a high-performance professional model. According to Forbes and some other foreigners, the iPhone is likely to make a difference in terms of selling and launching a regular model and a pro model like a MacBook or iPad. It is expected that Apple will release `iPhone 8`, which is expected to launch in September, as a high-priced model name `iPhone Pro`. The price of the product is estimated at USD 1,100.
Huawei is focusing on expanding its global distribution network. As of June, the company plans to expand its consumer contact point by expanding the world`s 42,000 specialty stores (Huawei Store) to 56,000 by the end of 2017. Besides, in addition to low-end products, the company is expanding its premium brand smartphone "Honor 9" in June and the flagship model "P10" released earlier this year, and is moving to strengthen its position in the premium brand market.
By Kim Ji Yeong kjy@
[ copyright ⓒ The Digitaltimes ]
It is difficult to expect continuous growth in demand as the smartphone market is mature. In the second half of the year, major smartphone makers in Korea and overseas are struggling to secure market dominance by diversifying product line-up and expanding distribution network.
According to the industry sources on July 31, as the market is maturing due to the increase in smartphone penetration rate, major handset makers in Korea and abroad are struggling to win users` strategy cards. According to Gartner, a global market research firm, the global device market forecast for 2017, which was released in July, smartphone shipments are expected to reach 1.6 billion units this year, just 5% higher than last year. Korean smartphone penetration rate is close to 91%.
Samsung Electronics, which recorded an operating profit of KRW 460 billion in the second quarter of this year, emphasizes `smartphone line efficiency`. The company plans to launch various smartphone models from premium (high-end) to low-end (low-end) products. The company has recently launched Galaxy J7 with KRW 390,000 and Galaxy A7 with KRW 580,000. It will be a strategy to defend the gap between the launch of the premium Galaxy S8 and Note 8 with a mid to low-end line. Currently, Samsung`s smartphones are composed of low-priced Galaxy J, mid-priced Galaxy A and high-priced Galaxy S series.
Meanwhile, connectivity between products is also strengthening. It is aiming to expand market compatibility with popular products and its products. Gear S3, Gear VR, and the like can be actively used with smartphones.
LG Electronics is expected to focus on boosting its lineup of family models for the smartphone G6 launched in March and Q8 sales. Last month, the company launched G6 Pro and G6 + family models in succession. The company plans to make the product family a steady selling product.
Meanwhile, Q6 and Q8, priced at KRW 400,000-500,000, will be released in August, and mid-low-end phones are expected to catch up. Both products are equipped with almost the same specifications as the LG V20 strategic phone launched last year. In addition, marketing of V30 (tentative name), which is scheduled to open in August, will also be aggressively developed.
Also, Apple plans to diversify its iPhone into a general model and a high-performance professional model. According to Forbes and some other foreigners, the iPhone is likely to make a difference in terms of selling and launching a regular model and a pro model like a MacBook or iPad. It is expected that Apple will release `iPhone 8`, which is expected to launch in September, as a high-priced model name `iPhone Pro`. The price of the product is estimated at USD 1,100.
Huawei is focusing on expanding its global distribution network. As of June, the company plans to expand its consumer contact point by expanding the world`s 42,000 specialty stores (Huawei Store) to 56,000 by the end of 2017. Besides, in addition to low-end products, the company is expanding its premium brand smartphone "Honor 9" in June and the flagship model "P10" released earlier this year, and is moving to strengthen its position in the premium brand market.
By Kim Ji Yeong kjy@