Evolution Of The Smartphone Market
The Smartphone, what a wonderful invention! I can’t even remember how life was before they were introduced to the market. These days no matter where you look, whether it’s on the streets, restaurants, bars, or any other public places, you will notice that almost everyone is using their smartphones, rather than talking to each other. However, I’m not here to talk about the impact of smartphones on our daily social life.
In only three short years, smartphone sales have increased by more than 300%, making it now uncommon to see people using old phones. At the beginning of the smartphone era, we were able to see many different brands with three major ones: Samsung, BlackBerry, and Apple. However, these days the market has become primarily focused around Samsung and Apple. So where has the ex-leader Blackberry and the other brands such as LG or Sony Ericsson gone? The answer is simple, they haven’t been able to adapt their brands to the evolution of the market and now Samsung & Apple have completely crushed the concurrence, with 50% of sales around the world in 2013 (32.7% for Samsung & 17.3% for Apple).
BlackBerry has been trying to make a comeback as a leader in the Smartphone market, but the value of their stocks decreased by 66.75% during the past three years. However, they started to recover in January 2014, with an increase of 21.35% of their stocks since December 2013. We also found out last week, that Amazon has joined the market by launching their first smartphone. If you would like to learn more about the Amazon Fire, click here.
Before submitting this blog, I decided to do some research on the cost of smartphone. I found out that the iPhone 5s is hugely expensive, ranging between $719 to $919 dollars (depending on the memory). However, the cost to manufacture an iPhone 5s is only $200, with a difference of $35 for the 16GB and the 64GB model. If you can do the math, you’ll see that Apple earns more than $500 for each iPhone 5S and evidently this is the norm because the other smartphone brands earn approximately the same thing.
So…with that in mind, which one is your favourite phone?