On the latest blogcast Brad and I argued about what is this Premium tier that BlackBerry Mobile aiming for? How do we define tiers on the modern smartphone age? In the beginning it was simple, we had big difference between high and low tiers. After few years we added the mid range tier of smartphones and it seems that price and specs are the ones who determine the phone tier.
Today, when low end and high end smartphones almost do the same things, its harder to define the tiers. For some, in the last year we even saw new tier, the Ultra high that include the iPhone X and Note 8 by Samsung, For some its still just the regular high end.
So i sit all day thinking how we can define tiers, and do we even need them? Well, i don’t have the answer for the second part and probably for the first part, but i can try to bring the factors that in combination can create those tiers.
For most people the price is big factor in the tier definition so lets try to make this title for every tier, as specs can be very similar between the tiers.
Let’s say that the low end tier is called the Budget phone market. Well, budget phones are what the title says, phones with price tag that is $150 or less, my guess is that in every country this budget price tag will change, but I take the average, $150 sounds just right in the USA and £200 can be in the UK. So what specs can be included in this tier? Let’s take the Moto E4 plus, this phone cost $140 and runs android 7.1 with HD screen, 32GB storage and 3GB of RAM, battery if you asked is 5000 mAh. Those specs sounds similar to other smartphones that we know.
So when you don’t have much difference in specs, price can play the game of tiers.
I will try to define by my self the tiers by price range ( And you can argue and don’t agree with me)
- Budget Tier – up to $150
- Mid Range Tier – $151 – $500
- Premium Tier – $501- $1000
- Ultra Premium – $1001 and above
Why does every vendor decide to price their product in lower or higher tier? Probably to gain more RPD (Revenue per device) and of course the material of build, no smartphone maker will tag price their smartphone in high price if the build level is low, they will chose to tag it with low price.
My thoughts are right for this moment in the smartphone age, cause as we advance, it can be change as it did in the last 10 years when every smartphone was premium tier with price tag of $400 (don’t call me on the exact number).
Could I be wrong? Possibly.
What is your definition of smartphone tiers ? Do we need those definitions ?