Bullitt Group co-CEO has predicted a 2016 market divide as vendors face a ‘tough and bruising environment’.
Speaking to Mobile, Colin Batt said: ‘We expect to see the market polarise between a small number of high volume vendors, and a broad assortment of smaller volume players targeting niche segments. There will be some vendors that prove able to adapt to this tough and bruising environment and thrive. The year will also see exits and consolidation among others that fall by the wayside.’
Batt believes that this split is being driven by ‘on-going challenges’ brought about by an influx of new devices and players, forcing vendors to look for new ways to differentiate in the market.
‘Commoditisation will be an acute and ongoing challenge for vendors throughout 2016,’ he said. ‘Market competition will continue to grow, with well spec'd and credible devices pouring out of markets like China and India at hugely aggressive prices.
‘In this context, differentiation will prove critical. Success in the smartphone space in 2016 will require increased focus on hardware innovation, as well as a more strategically significant role for apps and software in creating solutions users need, delivered by strong brands that users know and trust.’