
Remember Ericsson? Sony’s old partner in producing mobile phones continues to be an industry champion, though not in a visible way. Having left behind mobile phone production, they continue their long history in the construction of mobile network infrastructure, another multi-billion dollar industry hidden underneath the phones by our ears. Being one of the founding fathers of the telecom industry back in 1876, the Scandinavian company continues to shed light on where the telecom sector is and how it will change with industry-respected research. Did you know that another 3.7 billion new people will be smartphone users within just 5 years?
Total smartphone subscriptions reached 1.9 billion in 2013 and are expected to grow to 5.6 billion by 2019.
The surge in new smartphone users will come from Asia. 933m people in Asia were using smartphones up to the end of 2013, and that is heading towards 4 billion in just a few years. As developing economies generally evolve, the growth won’t be fueled by ultra-expensive-made-of-the-rarest-metal-you-can-only-find-on-Mars-flagships; instead, it will come in at the entry-level range, Ericsson points out.
But this seems to present a challenge for Sony. Sony Xperia product marketing manager Stephen Sneeden was quoted to CNET in January last year as saying that they couldn’t achieve the level of quality that is associated with the Sony brand at the entry-level price point, and that they may leave the entry-level segment alone to concentrate on the premium and mid-range areas. Their 2014 smartphone range seems to reflect this, with probably only the Xperia E1 checking in at the entry-level price point so far this year. So if Sony would like to tap into new sources of market growth, how could this be achieved without reestablishing itself in the entry-level segment to meet future growth?
Read on to hear more about what Ericsson predicts is coming in the next 5 years.
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