Tuesday, August 10, 2010

iPhone, BlackBerry killing mid-range phone market

Apple's iPhone and RIM's BlackBerry line are effectively strangling the market for mid-range phones, analysts at Deutsche Bank found in a new report. The parties now represent 2 thirds of all phone revenue but combined only catch up with about 10 percent of the market, leaving very little room for all the world but very low-end, high-volume devices. Korean companies are abiding the most as their focus on feature-laden but "dumb" phones that are nah longer selling as well.
Calling cards
"We think the change that Apple has constrained on the industry continues to play out," the bank said. "Those mid-range characteristic phones used to be Samsung’s and LG’s bread and butter intersections upon which they built their operations. Those kinds of phones are vanishing from the shelves in the US, increasingly replaced by high-end smartphones subsidized down to mainstream prices."
Pushline calling cards
LG, Samsung and companies that had antecedently thrived in the mid-range, such as Motorola and Sony Ericsson, have lately found themselves accepting to switch to smartphones to stay profitable. Nokia is currently the market loss leader in sheer units, but its dependence on low-end phones has broke its profits and handed market share to Apple and RIM even in once secure commercialises, such as Europe.

Many of the better-selling phones in the US now cost between $100 and $200 with smartphone plans even on contract. Almost staple phones, meanwhile, are frequently selling for $50 or less and are sometimes free.