Mobile phones and devices are going to reach a peak that will make them less of a novelty item. If you think in this highly mobile world that it won’t happen, think about it some more. When was the last time you upgraded your phone or laptop? Perhaps you haven’t done so in quite some time and definitely not as promptly as you would have in the past.
The industry is tricky, and it is predicted that there will be a peak in the mobile industry, and it is just a matter of time. Several factors are going to come into play before the peak of the mobile industry, and these things include things like:
- Lengthening the replacement cycles
- The increase in massive market penetration
- Political and economic uncertainty
- Consumer frustration around the ever-rising price points
In 2018, the decline in mobile sales had been noted. The mobile industry saw five consecutive quarters of declining sales, making it the worst year yet for the mobile industry. Even Apple and their ever-popular iPhones and Mac’s were synonymous with other mobile devices in sales.
When will the mobile industry peak?
Looking at the various aspects that go into the mobile industry, it is essential to look at what market trends are telling us.
Lengthening of Replacement Cycles
As you may have noticed, as mobile devices and smartphones become more advanced, the features they can contain are reaching a peak. Once devices are capable of accepting payments or doing complex computations, there is little else you can expect. There was once a time when you would replace your smartphone or laptop yearly, even those on contracts would upgrade before the end of a contract cycle. People are thinking twice if they should buy a Chromebook or a laptop.
The various features that have come with more advanced smartphones and laptops have led consumers to realize that one device is very much like the next, and upgrading is unnecessary as their mobile device already does more than they need it too. Therefore, the replacement cycles are going significantly longer than a year, even two years or more are passing between upgrades because it is no longer necessary.
Increase in Large Market Penetration
Let’s face it, and there isn’t a single market large or small that isn’t penetrated by the mobile industry. Therefore, with the advancement of market penetration comes the universal expectation of the mobile industry that can only go so far.
Once everyone’s market has been penetrated, and each individual is mobile equipped, where does the industry go next? Markets are being penetrated at an alarming rate. This rate will hasten the peak of the mobile industry, and a decline will begin.
Political and Economic Uncertainty
It is no secret that there are political uncertainties around the world. The political impact on the mobile industry is more centered on the economic impact political decisions have on the industry. With more and more political uncertainty, there is less faith in the economy as well.
The mobile industry is centered on economics. If the economy starts to decline, so will the mobile industry. Therefore, the political and economic uncertainties of current and future situations are going to help shape the mobile industry either at peak or as it declines.
Consumer Frustration at Ever-Rising Price Points
The advancement of the mobile industry has led to an exponential increase in the cost of current mobile devices. Consumers are starting to question what they need versus what is being offered as mobile price points continue to rise.
Some mobile devices that were once sitting around $300 have become more advanced with more features that many are not more expensive than a desktop or high-end device. As the price point continues to rise, the frustration of the consumer becomes more apparent, and thus sales will decrease, and the replacement cycles will lengthen considerably.
What Will Happen to the Mobile Industry?
Once the mobile industry has peaked, there will be a decline in sales so significantly that mobile device empires will reach a level of uncertainty. There really is only so much that the mobile industry can do to keep consumer interest. Plus, some things are entirely out of the hands of the industry experts.
The main thing that will happen is there will be a plateau in the mobile industry. Until new and more advanced tech can be discovered beyond current capabilities, there will be a standstill in the industry as people await something worth rushing to the market for.
Ultimately, the mobile industry has basically reached the peak of its current potential. Until political and economic factors catch up to the advancement in the mobile industry and the rest of the business world follows, there is little else that can be done.
There is little doubt that the mobile industry will survive a peak and a slight decline, but there is the question of when it will rise again. The mobile industry is necessary, it is integrated into your everyday life, and thus, it will not go away anytime soon. It is just a matter of finding the advancement that will lead consumers to flock once more.