Report: Consumers are tired of expensive phones

A few years ago, the best smartphones on the market could cost you 500 or 600 USD if they were purchased without a subsidy from the operator. My, how times have changed. The best phones from companies such as Samsung and Apple now cost about twice as much, and a new report from Gartner suggests that consumers are tired of it. According to Gartner, emerging Chinese brands are growing thanks to their relatively low prices and improved designs.

Samsung and Apple still rank first and second largest volume phone manufacturers, although Apple has stopped reporting iPhone sales figures in anticipation of recent declines. Gartner estimates that Apple has moved 64.5 million euros in the fourth quarter of 2018, 12% lower than the previous year. CEO, Tim Cook, told investors that the iPhone's revenue had dropped by 15%, a steep drop but consistent with industry expectations. According to Samsung, revenues declined by about 11% at the end of last year and also warned against the continued slowdown in sales.

As the biggest players lose ground, the new Chinese smartphone manufacturers are on the rise. Gartner estimates that Huawei's market share has reached nearly 15%, an increase of 4% over the previous year. This puts it right behind Samsung (17%) and Apple (16%). Huawei manufactures phones at different prices, but they usually cost at least a few hundred dollars less than Samsung and Apple.

Huawei's growth comes at a time when it is under scrutiny in the United States. The company's chief financial officer and the company itself are accused of conspiring to violate Iran's sanctions, and US intelligence agencies have expressed concern that the Huawei network's hardware may host Chinese spy technologies. However, the United States is only a small part of Huawei's overall business. The company's latest attempt to launch a flagship phone in the US collapsed when AT & T and Verizon withdrew from the Mate 10 release at Congress's request.

Consumers may be looking for alternatives, as smartphone prices continue to rise and Huawei is not the only company offering more affordable options. Other Chinese companies, such as Oppo, Xiaomi and Vivo, are also on the rise, offering hardware comparable to that of Samsung or Apple at a significantly lower price. According to Gartner, consumer sentiment towards brands is also changing. People are more and more proud to wear a Xiaomi phone as they did with their Apple devices.

Selling $ 1,000 phones does not completely destroy major OEMs, but it may not be a sustainable strategy. Samsung's decision to launch a collapsible phone of nearly $ 2,000, however, suggests that it is not ready to learn from it.

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