5.3 Social

 

Today almost everyone has a smartphone,
using it to communicate, find information, social media, online shopping, gaming
or watching video content, (Mintel, 2016). The trend of sharing everything
online and through social media have boost the consumption of smartphones (Forbes.com.
2016). According to Mintel (2016), there is a behavioural
shift in the way consumers are using smartphones that is progressively causing
tablets to lose their Unique Selling Point (USP). The development of phablets
(smartphones bigger than 5 inches) has lead to that consumers use their smartphones
to perform more complex or time-consuming tasks. This is resulting in
cannibalization where phablets are quickly taking over tablet activity, and
explains why tablet sales (for both Samsung and Apple) have been declining in
the last 2 years for all the major phone companies, (Titcomb, J, 2017), (Idc.com,
2017).

 

 

The mobile device market is changing
constantly because consumers develop their behaviours and needs constantly, (Cavallini, L., Baker, P. and Team, T, 2017). Companies in the industry
have to innovate their products at the same pace or faster, as customers’
requirements and demand changes.

One example of new consumer demand is the the new ultra high-end segment
of the smartphone market,
(Scarsella, A. (2017). The new high end segment prices
are now for the first time on $850-plus level. In more price sensitive markets
consumers might not be able to afford the high end products and therefore
mobile device companies offers device financing combined with trade in
activities to make the products more affordable, (Idc.com, 2017).

 

5.3.1 Demography and aging population

Smartphone sales are still
strong, with penetration up 10 percent year over year, and the highest growth
percentages coming in the 45-54 and 55+ age demographics—groups that have
previously lagged behind younger consumers, (Deloitte United States,
2017).

Samsung has over time succeeded very
well in innovating products to different consumer demand with an adequate
supply and they have launched more new models than any of its competitors,
(Figure 6).

Samsung Mobiles is the market leader
and their position is consider to be the only brand offering value for money
and high quality (Figure 5). They have been able to innovate and produce
different products which match each consumer segments present in the market,
(Figure 12).

5.3.2
Recommendations