OLD PHONES DIE A QUICK DEATH
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I think its time to coin a new term for the smatphones and in fact all mobile phone ‘handsets’ industry about the biggest danger in this industry? The Cliff. The sudden comprehensive collapse of the business. Why does this happen in mobile and at rates – I mean the speed in terms of timing of the collapse – never seen in any other industry.
CASES
Lets take a few case studies. What am I talking about. First, lets go to all phones, and ten years back. For the end of 2001, Siemens had 7% market share in mobile phone handsets. They had held a reasonably steady top 5 position for many years. Its a bit like LG has been recently. And what happend? They suddenly fell off a cliff. By 2003 their market share was half, and two years later, half again, and they quit the business (the Siemens handset business was sold to BenQ of China).
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