So what is market saturation in particular? And what is the main reason causing saturation of Smartphone market? Please find yourself in this article offline!
#first. What is market saturation?
In theory, market saturation occurs when the market's consumption capacity has reached its limit.
To be more abstract, I'll take an example like this: All OEMs have access to their desired markets, but having too many OEMs in a market makes competition very acrimonious.
At one point, the demand for that market stood still, not increasing or increasing very slowly. OEMs are forced to win each other's market share, instead of exploring and expanding market coverage.
That is, the number of users and new smartphone purchases increased slowly or almost did not increase, making sales and sales of most OEMs leveled off.
#2. Why is the smartphone market saturated?
Some typical reasons are as follows:
Consequences for optimizing production lines: Previously, only genuine phones (also known as flagships) could have buffalo batteries, large screens, beautiful cameras, eye-catching designs, … now, those needs of users have been and are being posted on mid-range devices or even cheap ones.
=> This makes machines in this segment more popular, and sales of OEMs will decrease.
The replacement cycle is getting longer: The cycle of a smartphone is usually from 6 months to 2 years. However, with the quality and perfection of smartphones today, this cycle can be up to 2 years to 4 years.
=> That means users will need a long time to buy a new device, and sales of smartphones will decline.
Lack of breakthroughs: The market is getting boring. Chinese phones are constantly imitating each other and imitating designs of big brands like Apple and Samsung.
Apple extended its breakthrough cycle to 3 years, instead of every 2 years like the iPhone 5 and 6 period. Samsung tried to make a breakthrough, but at a very difficult price to access. This makes people have no more reason to buy new smartphones.
Those are the three main reasons for saturation of the phone market today.
# 3. What do OEMs need to do?
First, a breakthrough is needed. This is necessary for both the market and the future of the smartphone industry.
Monday is Marketing: Spending money on advertising to increase sales is not a bad idea in the current context.
And finally the competition: This is indispensable and inevitable if you want to have more market share on this already cramped land.
Over. I thought that was it!
# 4. Conclude
Do you see Smartphone market is saturated is not? Do you feel affected in this market situation? Leave your comments below this article for your opinion!
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