Jul 13, 2015

Smartphone business declining?

Even it is not free falling as fast as the telco operators, several reports/news are pointing a decline on the smartphone business.
Nowadays everyone is sure that telco is not the "business of the future" anymore and sustainable growth is nowhere to be found. Biggest rivalry for the telcos were supposed to be coming from phone producers; they were the motor behind the dynamic T.I.M.E. market. Smartphones were meant "data usage" which has become the new cash milk for the telecom operators.
Although they had no chance to increase their shares, Nokia, Microsoft, Motorola, Blackberry were happy to be in the smartphone market and their earnings were increasing in-line with the expansion of the market. But now every phone brand is quickly becoming a commodity. Even Apple, the true winners of "cellphone wars", will eventually see a decline in their growth.
* Microsoft is almost closing their mobile phone business; What does Microsoft's $7.6bn, 7,800-person layoff meanfor Windows Phone?
* HTC recorded the second lowest revenue total that has been reported since 2007 2015 has been absolutely gruesome for HTC
* The Long Slow Decline Of Sony's Xperia Smartphones; http://www.forbes.com/sites/ewanspence/2015/02/05/sony-xperia-smartphone-future/
* And Samsung Sees Seventh Straight Profit Decline
All these reports are not suggesting bad management decisions. They only point the direction that phone manufacturing business has been going for the last few quarters.

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