While 2009 may be remembered as a year of fiscal uncertainty, a number of phone manufacturers and technology companies are seeing boosted profits and a distinct market turn towards high-end products. Apple Inc.’s fourth quarter …
Published at Aleptu – Gadget Blog (RSS)
Are Consumers Giving Up on Cheap Mobile Phones?
While 2009 may be remembered as a year of fiscal uncertainty, a number of phone manufacturers and technology companies are seeing boosted profits and a distinct market turn towards high-end products. Apple Inc.’s fourth quarter results showed a steady climb in sales for their well-known iPhone platform, one of the most expensive and popular mobile phones on the market.
Analysts believe that the move away from cheap mobile phones reflects a change in consumer priorities. As smartphones have replaced standard handsets, the latest mobile phones have seen wider sales figures, particularly amongst audiences that previously showed limited interest in mobile phones and high-end technology.
The vast majority of today’s high-end phones can browse the internet, manage emails and online conversations, and run user-designed applications and utilities. With today’s latest mobile phones more powerful, flexible, and user-friendly than ever before, it appears a growing number of once frugal mobile phone consumers are taking the chance to upgrade to high-end models and compare mobile phones not on cost, but on the feature set offered.
For example, Apple Inc.’s iPhone, currently the most popular high-end mobile on the market, has seen a consistent 100 percent increase in year-over-year sales. Famously dubbed ‘too expensive’ by Microsoft head Steve Ballmer, the popular phone is proving just the opposite – the consumers don’t mind paying for high-end equipment when it offers value.
Research in Motion, the company behind the well-known Blackberry line of business phones, has also seen impressive sales figures recently. While analysts were keen to point out the company’s recent strategic errors, sales figures were impressive and quite healthy – a 59 percent increase from the same period in 2008. Previously considered prohibitively expensive, high-end mobile phones are securing their place as a necessity for modern consumers and businesspeople.
Part of the reason for popularity rests in the changing face of today’s mobile technology. Mobile phones were once far from the must-have item that they are today – relatively limited pieces of technology offering very restricted internet access. The huge recent developments in mobile internet are, in many ways, responsible for the increase in demand for modern smartphones.
Because when you can check your email, schedule, and calorie intake all from your phone, what reason is their to invest in other technology? The phone was once a bridging device between direct mail and home computing. Now, as the recent release of Apple’s iPad had shown us, it’s become a clearly defined category of its own.
And for many consumers, businesspeople, and ultra-busy employees, that’s just what’s required. While the research-heavy tendency to compare mobile phones will hang around, it may not remain so hinged on price. Cheap mobile phones were once the priority for consumers, but the last two years’ shift towards high-end gear and seemingly unlimited expenses tell a different story – consumers value value and technology, not just competitive pricing.
Image Credit: http://www.flickr.com/photos/ryry9379/3211973204/
Published at Aleptu – Gadget Blog (RSS)
Are Consumers Giving Up on Cheap Mobile Phones?