Once upon a time the phones had only 10Mpx and a price tag of less than 500 euros.

Those days are long over and the current premium phones go easily over the limit of 1000 euro.

The recent announcement of the Pixel 3A come as a surprise to the current trend.

The beginning of 2019 is the beginning of a new trend. The smartphone market declines.

More and more smartphone owners keep their phones for longer and longer.

The issues

User see an increase of the price of the smartphone, with no significant innovation.

In addition, something specific for the android smartphone market is the lack of support after 2 years for premium phones and 1 year for mid range.

Paying more than 1k euro for a phone,  a customer would expect to receive constant and just for 2 years to receive the latest security updates and don‘t receive new features seems like a big waste of money.

Google Pixel

In 2018, Google made an acquisition of the HTC design division. This move gave them strength to position themselves as a phone manufacturer.  

Their Pixel brand is positioned in the higher end of the market and they are one of the few who manufacturer who provide a longer support of their products, which is definitely on the right track.

However, even with a longer support, the lack of sales trend is catching up on them as well.

The Solution

The market is saturated, then try different market. Google is trying to position their products not only in the high end, but now going also for the mid-range market.

This approach looks like a fresh breath of air in a market constantly squeezing the customers to pay more and more.

I will be interested in how this move by Google will affect other players in the market. I would predict that the market previously dominated by Huawei (the mid-range) will adjust in a negative for  Huawei direction.

However, the end user will be the biggest winner, because they will have a bigger choice of quality phones for a better price.

Aleks Vladimriov is a Senior Software Developer, recognized Project Manager and Soft-skilled trainer and a coach.

Aleks Vladimirov

Solution Engineering Manager at Thales | Senior IT Professional | Startup Mentor and Product Manager

Aleks is experienced Product Manager with an engineer background and over 10 years of experience as a software developer. He works with different governments and is responsible for negotiation features and requirements, understanding the customers’ needs and supporting the senior management with regular reports and analysis. He held various positions starting as a software developer, moving to a team leader and software architect.

He strives in waterfall and agile environment alike. He is certified Scrum Master and Prince2 Practitioner and he knows how to design business processes and help teams optimize their work.
During his tenure, he had to wear many hats, prioritizing business requirements, delegating work and mentoring team members, creating mockups with Balsamiq, providing MS Project plan to the senior management.

He had worked in many international teams, located in the same city or distributed in different countries and continents. He had been a team leader of cross functional international team of 8 people.

In his current position, he is very much client focused. He has excellent presentation skills.
He delivers training sessions on presentation skills and leadership and he had helped hundred of people to improve their presentation skills.

He is also interested in creating more positive changes in the workplace by using entrepreneurship skills.
He had won startup competition where his team had validated and develop a business idea from scratch.

In his free time, he writes in his blog about effective product development.

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