The smartphone market is changing

There has been a lot of news about Apple’s stock falling this week. Some celebrate that this spells the end of Apple and begins their downfall. Some are losing their hair over their stock value dropping like that. Some aren’t exactly caring about the whole deal, but find it interesting nevertheless. The thing is, when Apple became the first trillion dollar company, it got into a place where it shouldn’t been in the first place. Apple as a company isn’t exactly cutting edge.

The smartphone market is just like any other market out there. There will be market leaders with products that will be used more for a period of time before something else comes along and does things a little differently to cater to the new needs and wants of the consumer. The classic example of Facebook replacing MySpace is something that happens constantly, but the timescale with some products can be glacier. Sometimes the company that is replacing the product is doing it by themselves, like how Hasbro saw the falling sales of Transformers toys and relaunched the series with Beast Wars, which in all honestly saved the franchise. The reason why this worked was because from the mid 1980’s to late 1990’s the world experienced a kind of boom relating to land and sea animals. Star Trek IV: The Voyage Home was part of this green movement, where whales and dolphins got their share of newfound love. Seaquest DSV and the 1995 Flipper series hit this cultural consensus just the right way. The consumers wanted to have something different and there was need for innovation. Hasbro relaunched their money maker franchise and the rest is history.

Smartphone market is in a similar place at the moment. Apple beat Nokia by innovating the concept of the mobile phone by using existing ideas to make something new. Nokia had a chance to beat Apple, but they never launched the phone that would effectively been what the iPhone is, because the execs didn’t see a need to radically change their strategy. Execs tend to be rather rigid in their way of thinking in terms of products and the market, which is why the smartphone market currently sees very little to no innovation at the moment. Everything is incremental. The bezels are slightly thinner, screens are slightly larger (with a stupid notch there for whatever reason) and the usual tech advancements apply. Not many people are happy that the earphone jack, something that has been and still is a standard, has gone missing. In effect, there is really no reason to upgrade your phone if it’s not busted.

Apple’s innovation regarding iPhone has always been to stand on the shoulders of others. That’s completely normal for a tech company, though some would claim Apple didn’t exactly innovate while standing on those shoulders. Nevertheless, whatever Apple’s strategy is or was, it’s not working as intended. Falling sales can be directly related to the consumers being more or less full of Apple products and them not meeting the needs. Chinese competitors are producing phones that are simply better and have more style at a cheaper price, and don’t lock you to Apple’s own ecosystem, seem to have become more popular in Asia. Hell, in India Apple has only 1% market share, they just don’t jive with the wants of the consumers there.

The thing with Apple is that what they market first and most is lifestyle. This is somewhat ironic, as Steve Jobbs himself said something along the lines of When a company begins to market and stops innovating, it dies. That’s pretty much all Apple has going on for them at the moment. They are an alternative lifestyle company, offering inferior products to consumers who wish to stand out from the rest of the crowd. Apple’s device space is unbeatable currently, with all of their products existing in unison with each other, but outside that the hardware and software aren’t exactly the best possible. It’s sad to see the creative schools pushing for Macs, when the industries themselves use different system. Adobe works just as well on Windows as it does on Apple.

At some point Apple comes to a goal where they’ve reached their own market saturation and most people who can afford Apple  have entered the ecosystem. After that, sales will be harder to make and they have to make serious efforts to convince their customer to upgrade each device in the ecosystem. Hence, it’s not the best idea of put the blame of lack of sales and success on the consumer. Apple does offer some neat services and their personal security is top notch, but as said, the devices themselves haven’t exactly changed overall, and that applies to smartphones overall. At some point, the current paradigm is just driven to the ground and something else will come about. Apple has been toying with the watches and glasses, but they’re not what the consumers want.

That’s the crux of things really. A company can’t really blame on its consumers not wanting to upgrade if there is nothing new, no edge over the old stuff they already have. Innovation be damned, buzzword as it is, but none of these companies can ignore that the smartphone market is in a spot where things are becoming stagnant. What’ll be the next big thing is an open question, and very few people are even able to make an educated guess. Maybe we’ll get those flexible and bendable phones Nokia was talking about in 2008. Whatever it is, one can only hope it’ll be as massive paradigm shift that the smartphones were from their predecessors. Cleaning the slate does good at times.

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