The classic tale of the loyal cell phone consumer could be adding a new chapter in the months to come, according to market researchers. Ten years ago the world seemingly shifted course as the advancement of cellular technology took a cosmic leap with the debut of the first Apple iPhone and Samsung's F700 smartphones. Since then not only have consumers had their eyes fixated on the pixelated screens of their multifaceted smartphones, but they've also been waiting with palpable anticipation for the next-best version of their gadget to come along. But things are changing as consumers become more accustomed to such luxurious devices while technological development has seemingly plateaued. Now consumers are holding onto their smartphones just a little bit tighter being less likely to take the leap towards the newest models released by the two heavyweight brands. Sales have declined but a new opportunity has presented itself: a chance to pry steadfast brand-loyal customers away from their previous suppliers with the promise of better technology.
Samsung revealed their newest smartphone, the Galaxy 8, on March 29th. A spokeswoman for the company says that; “The Galaxy S8 is our testament to regaining consumers’ trust by redefining what’s possible in safety and marks a new milestone in Samsung’s smartphone legacy.” That "consumer trust" the spokeswoman mentioned Samsung hopes to regain with the S8, was tainted by the catastrophic failure of their Galaxy Note 7. The Note 7 not only blew up in the hands of customers but also in company profits, costing them $5 billion in manufacturer recalls. But Apple has faced their own woes as their iPhone 7 was largely rejected by consumers. The product offered very little (if any) innovation and what some considered to be a regression with the removal of their headphone jack. The market which had become lifeless may be resuscitated with Samsung's S8 debut, and by doing so they hope to capture Apple customers. Apple however will not go down without a fight and hopes to 'return fire' when they unveil the iPhone 8 commemorating the 10th anniversary of iPhone's debut. Technological advancements are highly anticipated with this newer version which Apple hopes will also swipe Samsung loyalists.
Price may also be a factor in players switching sides. While consumers are looking to get the most 'bang for their buck' and have become hesitant to fork out such high costs for mobile devices. Samsung hopes their $750 price tag will improve their chances while iPhone prices are expected to remain high with a hefty price tag of $1,000.
The trilogy of price, technology, and brand loyalty may re-write the tale in a relatively stagnant market where consumers have rarely switched brands. Little brother Samsung hopes to step out of their big brother's shadow while Apple hopes to re-live their glory days. 2017 could prove to be an interesting year in the smartphone market, customers will just have to wait and see as the heavyweight bout unfolds!
Name: Joe Webb
Class: MKTG 3343
Article: Samsung, Apple Intensify Battle for Smartphone Users
Link to WSJ Article:https://www.wsj.com/articles/samsung-apple-intensify-battle-for-smartphone-users-1490952618
This is truly interesting because I actually considered switching, but decided I cannot live without IMessages. I have actually decided to wait until the release of the Iphone 8 to true on decide if I will be switching.
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