After fully embracing the open source Android operating system and employing an aggressive marketing strategy, not only does Samsung control 33% of the smartphone market compared to main rival Apple’s 18%, but mobile phones now generate 75% of Samsung’s profits. With the upcoming release of the Galaxy S4, they’re poised to completely dominate the high-end mobile phone market.
But many experts question whether Samsung’s dominance is sustainable. According to an article posted on the digital news outlet Quartz, “The smartphone market, currently at about 1 billion handsets, is expected to double by 2015. And most of that growth will come at the low end of the market. ABI Research expects cheaper smartphones to account for 46% of smartphone sales by 2018, up from 28% in 2012.”
If that happens, the authors assert: “The future of smartphones looks to contain fewer high-profile launches and $4 billion marketing budgets, and more of the brutal competition and infinitesimal profit margins that have come to epitomize the PC industry.”
While this is fascinating from a business and technology perspective, the coming war of attrition has real-world implications for businesses and consumers alike. As we’ve discussed before, many people are abandoning desktop computers and, increasingly, laptops in favor of their smartphones and tablets. And businesses that are unable to adjust to this new reality will be left behind.
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As the mobile phone wars rage on, you have a chance to develop effective strategies that’ll help you stay competitive in this emerging market. But without an effective way to reach your respondents, no matter who wins the mobile wars —Samsung, Apple or any of their smaller competitors— you lose.
