Despite
a dazzling array of new devices on display at the recent Mobile World Congress
in Barcelona: phones that fold, phones with buttons,
phones with enormous batteries,
expensive phones, budget phones, 5G-ready phones… they aren’t exactly flying
off the shelves.
a dazzling array of new devices on display at the recent Mobile World Congress
in Barcelona: phones that fold, phones with buttons,
phones with enormous batteries,
expensive phones, budget phones, 5G-ready phones… they aren’t exactly flying
off the shelves.
Samsung’s overall operating profits were down by 60%
year-on-year for the first quarter of 2019.
year-on-year for the first quarter of 2019.
Apple slashed its iPhone sales forecasts at the start of the
year, blaming a slowdown, particularly in China.
year, blaming a slowdown, particularly in China.
It
has since repositioned itself to focus on services rather than gadgets, unveiling a new TV streamingplatform, gaming portal and credit card at a star-studded
event in March attended by Oprah Winfrey and the actor Reese Witherspoon – with
not a new device in sight.
has since repositioned itself to focus on services rather than gadgets, unveiling a new TV streamingplatform, gaming portal and credit card at a star-studded
event in March attended by Oprah Winfrey and the actor Reese Witherspoon – with
not a new device in sight.
That’s their lowest in six years, according to figures released
by the state-affiliated research unit China Academy of Information and
Communications Technology.
by the state-affiliated research unit China Academy of Information and
Communications Technology.
Sales had
already been slowing in Europe, says Marina Koytcheva, technology markets
analyst at CCS Insight, and elsewhere, with the possible exception of India and
Africa.
already been slowing in Europe, says Marina Koytcheva, technology markets
analyst at CCS Insight, and elsewhere, with the possible exception of India and
Africa.
“I don’t think I have seen the market with such a negative
outlook in the last 10 years,” she says.
outlook in the last 10 years,” she says.
“I don’t think we will ever again see the growth of five or
10 years ago.”
10 years ago.”
Innovation (or lack
of)
The top-end handsets have increased in price dramatically in
recent years. In 2017, Apple boldly smashed the $1,000 (£775) price point with
the iPhone X, followed by Samsung with the Galaxy Note 8.
recent years. In 2017, Apple boldly smashed the $1,000 (£775) price point with
the iPhone X, followed by Samsung with the Galaxy Note 8.
“In
less than a year, the $1,000 phone has become entirely normal,” noted Vlad
Savov on tech website the Verge in August 2018.
less than a year, the $1,000 phone has become entirely normal,” noted Vlad
Savov on tech website the Verge in August 2018.
Critics of the phone industry argue that at the same time,
innovation has stalled. Each new handset might have a slightly better camera,
slightly faster processors than the last, but for the average consumer, one
black rectangle is pretty much being replaced by another.
innovation has stalled. Each new handset might have a slightly better camera,
slightly faster processors than the last, but for the average consumer, one
black rectangle is pretty much being replaced by another.
In the last few weeks, both Huawei and Samsung have unveiled a
new take on the black rectangle – the folding phone.
new take on the black rectangle – the folding phone.
The Huawei Mate X folds out into an 8in device. It has
split screen abilities, no notch and is 5G ready.
split screen abilities, no notch and is 5G ready.
For those with that cash to spend on a new phone, is it exciting
enough to break the global ennui?
enough to break the global ennui?
“There will be a small number of big enthusiasts who will
buy these phones but they will have to fall in price quite a lot to make an
impact,” says Marina Koytcheva.
buy these phones but they will have to fall in price quite a lot to make an
impact,” says Marina Koytcheva.
“They will have to start selling in large numbers.”
That will only happen if the device can prove itself useful.
“It’s impressive innovation,” says Ms Koytcheva .
“But why do you need it?”
And
here’s another potential red flag: Samsung has now delayed the launch of its
Galaxy Fold following reports of brokenscreens.
here’s another potential red flag: Samsung has now delayed the launch of its
Galaxy Fold following reports of brokenscreens.
Big screens, small
pockets
The traditionally male-dominated tech sector has been accused ofignoring at least 50% of its target market – women – in not acknowledging that
women’s hands and trouser pockets are generally smaller than men’s while
flooding the market with ever larger devices.
women’s hands and trouser pockets are generally smaller than men’s while
flooding the market with ever larger devices.
WhenApple announced it was discontinuing its iPhone SE, which has a 4in screen,
Caroline Criado-Perez, author of a new book called Invisible Women, tweeted
that the tech giant had “failed to update the only phone it makes that
fits the average woman’s hand size”.
Caroline Criado-Perez, author of a new book called Invisible Women, tweeted
that the tech giant had “failed to update the only phone it makes that
fits the average woman’s hand size”.
“Weak applause all round from my arthritic hands,” she
continued in the now-deleted thread on Twitter in September 2018.
continued in the now-deleted thread on Twitter in September 2018.
5G future
Promises made for it include being able to download a 15-minute
video in one second, potentially making home broadband redundant and getting
all your smart gadgets properly connecting with each other.
video in one second, potentially making home broadband redundant and getting
all your smart gadgets properly connecting with each other.
They are on their way – although global security concerns
threaten to derail the rollout schedule.
threaten to derail the rollout schedule.
Chinese firm Huawei is one of the few manufacturers of the
infrastructure required for 5G and there are concerns from several countries,
led by the US, over whether it can be trusted.
infrastructure required for 5G and there are concerns from several countries,
led by the US, over whether it can be trusted.
Mobile provider O2 said Huawei makes up only 5% of its UK 5G
infrastructure, but it would take time and money to remove it all if the
government orders it to do so.
infrastructure, but it would take time and money to remove it all if the
government orders it to do so.
“We thought it would support it, but 5G is coming more
slowly than we hoped.”
slowly than we hoped.”
Phone freedom
Last
year, France introduced strict rules around the use of smartphones in schools,
banning them for all pupils under the age of 15.
year, France introduced strict rules around the use of smartphones in schools,
banning them for all pupils under the age of 15.
Apple, Google and Facebook also released tools that show you the
extent of your screentime – a move which was greeted with amused horror, and
some criticism.
extent of your screentime – a move which was greeted with amused horror, and
some criticism.
The phone industry’s response to this desire to detach has been
to unleash so-called companion phones – smaller handsets with more basic
functions, designed to keep people connected without keeping them hooked.
to unleash so-called companion phones – smaller handsets with more basic
functions, designed to keep people connected without keeping them hooked.
Now
whether the solution to you spending less time on your big phone involves you
buying a smaller phone is perhaps debatable but it shows the industry is at
least listening, having devoted years to producing devices specifically
designed to maintain our interest.
whether the solution to you spending less time on your big phone involves you
buying a smaller phone is perhaps debatable but it shows the industry is at
least listening, having devoted years to producing devices specifically
designed to maintain our interest.
“Yearly
sales of 2 billion mobile phones seemed so close just a few years ago, but
might become a distant dream for the industry,” she wrote in a report on declining sales.
sales of 2 billion mobile phones seemed so close just a few years ago, but
might become a distant dream for the industry,” she wrote in a report on declining sales.
“Our new five-year outlook is for 1.9 billion units on an
annual basis until 2023.”
annual basis until 2023.”
