Cut-throat competition is ratcheting the pressure on manufacturers to
find ways to convince consumers to pay up for a little bit extra. PHOTO |
ROBYN BECK |
AFP
In Summary
- Phonemakers including Samsung Electronics Co Ltd, Sony Corp and ZTE have launched devices to pair with their phones ranging from a 360-degree camera to an earpiece that whispers notifications to users.
- Weak global economic conditions are further clouding prospects for what is expected to be another tough year for the mobile industry.
From a remote-controlled robot camera to a
sonar-enabled smartwatch to locate fish to reel in, smartphone makers
are launching new devices and services in a bid to drive sales for their
handsets and set themselves apart in a crowded field.
Waning global demand for smartphones, especially in key
markets such as China, and margin-eroding, cut-throat competition are
ratcheting the pressure on manufacturers to find ways to convince
consumers to pay up for a little bit extra.
LG Electronics Inc, for example, launched modules
for its G5 flagship phone, allowing users to add on accessories to
provide better audio and pictures. It also unveiled a new virtual
reality (VR) headset robot camera accessory that rolls around like a
ball while capturing images and video.
"Simply improving what already exists won't win
acceptance from customers as unique," LG mobile chief Juno Cho told
reporters in Seoul ahead of the Mobile World Congress (MWC) trade show,
which ended this week in Barcelona.
"At this point you have to create value through a completely different approach in order to attract interest."
At the event, other phonemakers including Samsung
Electronics Co Ltd, Sony Corp and ZTE also launched of devices to pair
with their phones ranging from a 360-degree camera to an earpiece that
whispers notifications to users.
"This is symptomatic of an industry that has
realized that growth in smartphones has ground to a halt," Richard
Windsor, an independent analyst, said in a note.
Seeking boost
Weak global economic conditions are further
clouding prospects for what is expected to be another tough year for the
mobile industry. Researcher IHS tips the industry's revenue to grow by
just 1.1 percent this year to $373.1 billion, well below the an expected
6.3 percent shipment growth.
Against this backdrop, smartphone makers are trying
to prop up sales and protect margins through accessories and features.
In addition to virtual reality, firms such as Samsung, LG and Xiaomi Inc
are pushing into mobile payments services to further differentiate
their products.
"In order to protect margins, vendors must drive
revenue around the box," Canalys analyst Tim Coulling said, adding that
new accessories and services could help convince customers to upgrade to
devices to take full advantage of the new offerings.
Other analysts, though, were more skeptical, saying
accessories such as VR headsets and the so-called internet of things
remained niche products, unlikely to deliver near-term growth.
Most phonemakers also lack the software
capabilities necessary to enable their various devices to work
seamlessly with accessories, and offer a strong enough lure to
consumers, analyst Windsor said.
"Growth is going to be very hard to come by this year," he added
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