With the rapid growth of C-brands and the increased share of low to mid-price tier smartphones, it is unsurprising that leading brands are also focused on offering devices that play in this growing space.
In 2019 Samsung refreshed their Galaxy A series, with boosted specs and a sleeker design, the launch helped to stall the surge in C-brand sales. Since the A series release in Q2 2019, Samsung has boosted their share in the low, mid and high spend tiers. They have also slowly reduced the number of consumers churning to the likes of Huawei. Their strong performance continued through Q1 2020 with five models of their 2019 launches appearing in the list of top 20 sellers.
In April 2020, iPhone SE 2 launched with the strapline “Lots to love. Less to spend” and the timing couldn’t have been more acute. iPhone SE 2 offers the latest A13 chip, the same chip used in the flagship models iPhone 11 Pro, enabling an advanced camera system for photography and videography.
The camera is among the top feature drivers for consumers specifically choosing their device above others.
The iPhone SE 2 provides the latest technology at low cost.
While there is much activity in the low-mid price tier, it is important for manufacturers to also continue delivering at the super-premium tier, using their flagship products to carry the launch of first-to-market cutting edge innovation.
Flagships should continue to act as the model markers of what “best” looks like, create desire and aspiration.
A broader portfolio is an opportunity for manufacturers to set out clear models/series differentiation through a tiering structure to meet the needs of more consumers, widening appeal and protecting an established existing base of consumers. This is what will give the market leaders a distinct edge over C-brands.
