2016 was a year of many firsts in the mobile phone markets, innovations continue to grab headlines with smartphones morphing into anything but a device just to make and answer calls. Finger print sensors are now installed in sub RM1k phones, dual camera with professional grade lens is common, and displays are no longer just to see clear images, they are now immersive!
An industry where manufacturers constantly try to outdo each other, incumbents do not have a easy ride as leaders, nor do those who fell from grace remain fallen. Samsung, a long time leader in Android based smartphone is quickly realising after last years battery fiasco on its Galaxy Note 7, that they are not invincible, with Huawei and OPPO hot on their heels, the numero uno smartphone and mobile manufacturer is on tatters. Looking at latest IDC worldwide smartphone shipment for 2016 report, Samsung and Apple retained their respective first and second ranking both Chinese brands Huawei and surprise rising star OPPO came in at fourth. The company also recorded a year on year growth of over 100%, ultimately dethroning Huawei and is now the leader in China. But there were signs of concern for the leaders.
Total shipment was at 1.47 billion units with the top two managing to hold 30% of global sales, selling over 500 million and 230 million between the third and fourth, all four combined hold 50% of the market. Worth noting is that both Samsung and Apple lost market share, leaving to show, consumers are changing their purchasing behaviours, no longer induced by brand promise and don’t mind opting for features and price instead. This could have lead to both Huawei and OPPO recording historical percentage gains, with OPPO moving into triple digit category with their R9 and R9s, smartphones with capabilities at much lower cost.
Just like how Nokia dropped off the edge of space and inching back with their Android device, there is no certainty when it comes to consumer technology business, what is dinosaur today could come back to bite you in the future. Case in point: Apple was written off a few decades back and now is the biggest technology company on the planet, Intel with 99% PC processor market share completely ignored the mobile explosion and is now playing second fiddle to ARM and Qualcomm (something Intel execs are not used to).
But being in an industry that moves at lightning speed and subjected by Moores Law, what I have come to observe is that, perseverance and innovation pays, unlike any other industry technology changes from one form to another Missed a boat? There’s another not too far away.
