4 ms·
Wow, a 21% year-over-year drop... and this makes the fourth consecutive quarter of annual declines (in the previous three quarters, shipments had dropped -3%, -
by cs702 9y ago
Wow, a 21% year-over-year drop... and this makes the fourth consecutive quarter of annual declines (in the previous three quarters, shipments had dropped -3%, -5%, and -14% year-over-year). A hard landing indeed.
The implications for phone makers are unpleasant: price competition is going to intensify and profit margins, which are already thin, will get squeezed even more and might even turn negative. (Only Apple, which makes exclusively high-end devices for style-conscious, less-price-sensitive consumers, looks well-positioned to avoid a profit margin squeeze.)
The implications for mobile software applications and services are also unpleasant: the days of ultra-rapid user/subscriber/revenue growth are likely to end soon.
- reaperducer 9y ago>Only Apple, which makes exclusively high-end devices for style-conscious, less-price-sensitive consumers, This is a very tired cliche, and untrue to anyone who's ever seen any of the hundreds of ads where new iPhones are available for $0 from most carriers.
- system16 9y ago> iPhones are available for $0 from most carriers. In the US maybe. This discussion is about China.
- seanmcdirmid 9y agoThat cliche isn’t true at all in China. When you only have to pay around 100RMB/month for your plan, there isn’t much room for phone subsidies.
- 1123581321 9y agoThis is about China, but even in the US a free iPhone is not a common carrier incentive. You can see a summary of deals here.* Promotions apparently range from $200-500 in value. Android phones and tablets are the ones routinely given away for free (e.g. T-Mobile currently offers a free Android tablet just for switching an existing prepaid account to post-paid), though again, not for the premium brands like Pixel. It may be tiresome to hear that iPhones cost more and are popular at the same time, but it’s still true. * https://www.tomsguide.com/us/iphone-x-iphone-8-best-deals,news-25833.html https://www.tomsguide.com/us/iphone-x-iphone-8-best-deals,ne...
- pjmlp 9y agoThat isn't like that in most countries.
- walshemj 9y agoYes but with a huge monthly rental that means you pay a lot more than buying the phone ought right.