As tech fans we have been waiting for the ultimate device, especially with smartphones. Though we can argue that we are not quite there, we truly have come a long way. So much so that phones are passing by other electronic devices, especially in regard to the price point. But as prices of flagship phones continue to skyrocket, customers are either looking elsewhere, or holding on to their phones longer. This is evident in the fact that companies like Apple and Samsung are not hitting their projected quarterly numbers.
Samsung warned their shareholders to expect Q1 numbers to not be as high as projected. Apple had a similar issue a few months before, and questions surfaced whether people were not wanting to buy their products anymore. But the issue is not so much people not “wanting” to buy their products, it’s an issue of people not wanting to spend over a thousand bucks for a smartphone (or holding on to their phones even longer). And with phones like the Motorola G7 and One Plus, there really is no reason for people to have to spend that kind of money anymore.
This will hopefully shift the industry in a way that is more beneficial for the consumer. With the mid and low end phones getting better, and flagship phones searching for ways to get consumers in the store, this dynamic will hopefully shift the price of phones back a little. Though my thought is that these companies are not wanting to go back to cheaper flagships, given companies like Apple and Samsung managed to get people to sign off on paying over a thousand dollars on a phone.
Currently these companies are gambling on the fact that they will be able to still get people interested in having what is hot. And these companies still hold the cards on what they can help determine what that is (that being what is hot). With the next trend being the solution for those wanting a portable tablet, manufacturers are hoping to capitalize early and get back to higher quarterly numbers.