Is the cell phone market saturated?

 

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After viewing the latest sales numbers for Microsoft’s flagship Lumia phones (8.6m in 3Q/15 vs 2.3m in 3Q/16) I was wondering whether it was possible for the cellular phone market to be approaching a saturation point. While Microsoft has plenty of money to advertise and throw at carriers, why have they been reluctant to do so? The same trend has been reported by Samsung and Apple. At first you may be skeptical, UTB predicting weakening iPhone sales, what else is new? Only thing is, this prognostication came directly from prodigal prince of phony plastic phones, Tim Cook. So what’s the market going to look like in the coming quarters? Carriers offering deals to steal customers away from their competition? That’s been going on for awhile. Cell phone manufacturers dropping prices shortly after introducing a new phone to market? That’s already happening too – well with the exception of Apple who values the almighty dollar too much (but they did drop the price of the Apple Watch less than a year after its’ introduction).


Cell phone manufacturers and carriers base their projected sales on customers replacing their phones every 1 – 2 years as new phone are brought to market, but consumers are more price sensitive now and manufacturers are offering little in the way of innovation – so there is not much incentive to upgrade with the same frequency as in the past. It will be interesting to see what dynamics change in this space.

 

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Given that BlackBerry has the best operating system by a longshot in OS10, the handsets are of the highest quality (Passport, Classic, Leap, etc…), and you also get access to Android apps via Amazon,  why would you even consider buying any other brand?  Now more than ever it’s time to come #BackToBlack!

Rob

kayaker co-pilot Tucson, it's a dry heat!

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