Buyer Trends in the Smartphone, Tablet and Gaming Console Sectors

Technology is one of the most dynamic industries that exist today. It changes every second with new innovations, upgrades and updates. Within this market, the launch and increasing use of new technical gadgets that are laced with great features is a trend that is hard to miss.

However, the industry is big and extensive, making it too difficult to analyze in a single post. Therefore, this post will be tackling the three main technological devices that users and wholesalers alike need: smartphones, tablets and gaming consoles. The following lines will give you a peek at what to expect if you deal with one or more of these three electronic gadgets.

A Look at the Growing Smartphone Market

In recent years, this is one industry that has grown at a spectacular rate. Analysts have already stated that while the smartphone market will continue to grow, it will follow a slower pace as compared to the past years. Between 2012 and 2013, the percentage of smartphone users increased by 6.2%. Compared to the 8.5% growth rate of the previous year, this is actually a decrease in the rate of the use of the smartphone.

Between 2013 and 2014, it was predicted that smartphone users would increase by 5.1%, taking the total population of smartphone users to an unbelievable 4.55 billion. In later years, the decrease in the percentage of change of smartphone users will continue, but the total number of smartphone users by 2017 is expected to reach 5.13 billion.

This increase in the number of users is mostly concentrated in the Asia-Pacific, the Middle East, the Latin American and the African regions because smartphones have now become more affordable.

However, in most low-income countries, only the urban population is switching to the use of smartphones while the rural population stays without these devices. Moreover, people are also switching to the use of smartphones as 3G and 4G services are becoming more common.

According to estimates, more than 2.23 billion people in 2014 will use their mobile phone to go online. A large population of smartphone users is currently using Android phones, especially in low-income countries, as these phones are more affordable when compared to iPhone and Nokia Windows phones.

Currently, the 10 fastest growing markets for Android and iOS smartphones in the worlds are China, Chile, Brazil, Argentina, Iran, Vietnam, Mexico, Russia, Turkey and India. Samsung and Apple are still two of the most popular smartphone brands in the world, but the former has clearly taken precedence over Apple in terms of market share due to its more affordable structure while offering almost the same features as competitors. However, when it comes to overall sales, both companies lag behind Chinese mobile phone brands available in the market.

A Look at the Fast Growing Tablet Market

While the growth of smartphones is following a downwards spiral, the case with tablets is completely the opposite, as they are being used more and more across the world. It is astonishing that the wave of adoption driven by tablets is quicker and more substantial than that of laptops and smartphones. Now, more than ever, people are discovering the benefits of tablets and are using them extensively for a lot of reasons.

While 52% of Americans between the ages of 12 and 64 owned a tablet by the end of 2013, the percentage is expected to rise to 64% by the end of 2014. In 2014, tablet production may increase by 25% because of the increasing demand. The total sale of tablets in this year is expected to go way more than 200 million units, beating the sales level of 2013.

Among all these tablet sales, the brand most sold is Apple, capturing 36% market share in 2013 and 32.5% in the first quarter of 2014. Samsung followed with a 19.1% market share in 2013 and 22.3% in the first quarter of 2014. Brands like Amazon, Asus and Lenovo make up the rest of the market. 55% of the total tablets sold in 2013 had an 8” screen size, 44% had screen size between 8” and 11”, and 1% had an 11”+ screen size.

The use of tablets for entertainment is definitely one of the main reasons why people are using them. However, compared to smartphones, tablets are used for more than just entertainment. They also support activities like checking emails, conducting business, and supporting educational purposes. T-commerce or tablet commerce is also constantly on the rise as more people are using tablets to make their purchases.

Other reasons for the growth of tablet use include enterprise and workforce management, printing documents, educational sessions and for government use. The use of tablets, especially in educational and informative fields, will continue to rise in the coming years due to the mobility and convenience they offer. As a result, it may be safe to say that the percentage of growth in the tablet market would be highly positive and substantial in the coming years.

Taking a Look at the Slowing Gaming Consoles Market

The next major gadget in the technology industry is one that has been famous for quite some time now: the gaming console. Nintendo, PlayStation, Xbox – all of these devices have stayed the favorite dream of a gamer for a long time now.

However, the gaming console market is all set to follow a trend similar to the smartphone market. While the number of gaming console users increased by an average of 3.93% between 2012 and 2016, this rate has slowed comparatively. This means that while the craze of gaming is still there, fewer people are willing to spend hundreds of dollars on the purchase of these consoles.

According to a recent report, only 29% of hardcore gamers say that they would buy a new gaming console right after its release in the market while others agreed that they are either happy with their current consoles or would rather wait for the prices of new consoles to come down before purchasing them.

The dominance of consoles in the video game market came crashing down in 2012 with more people switching to online social gaming platforms as an alternative. Despite the new gaming consoles introduced in the market very recently, the gaming console market is not as enthusiastic as it used to be. The leading gaming console brands that were, and still are, dominating the console market are Microsoft with it Xbox consoles, Nintendo with its Nintendo handheld devices and Sony with its PlayStation.

However, there are a few noticeable trends that are visible in the gaming consoles market. Gesture-based control systems for gaming are growing in popularity, attracting more gamers who will be willing to pay for it. In addition, people are looking for consoles that can be more multi-functional in nature, offering much more to users than just a gaming device. The sales of gaming consoles, however, is greatly impacted by the increased use of social networking platforms that offer games of their own, diverting the attention of gamers.

All in all, the general trend in the gaming consoles market is a downtrend and will continue that way, even when the number of console owners goes up for the next few years before that starts plummeting too. It is likely that the most hardcore gamers would stick to gaming consoles in the future if the industry does not catch up on the technological trends people are demanding.

The Four Key Consumer Trends in the Consumer Electronics Market

Overall, the consumer electronics industry, which contains smartphone, tablets and gaming consoles along with other devices, is going quite strong and bullish, showing compound annual growth. It is not just the younger generation that is showing avid interest in technological gadgets, but also older age groups.

Emerging economies are the most important markets for these consumer electronic goods with active buyers readily available in these markets. However, all these buyers have indicated some strong market trends that are consistent across different markets. In the light of a study conducted by Accenture, here is an explanation of the four strongest trends that are visible in the consumer electronics market today.

Increased Focus of Consumers on Multi-Functional Devices

As convenience becomes a focus of consumers, they are now looking for more multi-functional devices so that they have to buy fewer electronics. People are no longer interested in buying single-function devices now that PCs, tablets, smartphones and even gaming consoles are all offering way more beyond their basic function.

While this demise of single function devices was accelerated by smartphones and tablets initially, the consumer electronics industry caught up to the trend soon, changing everything from high-definition TVs to gesture-controlled gaming console systems. For marketers to make their niche in the market, focusing on creating multifunctional devices for these consumers is definitely a worthy effort.

Consumers are Diverting from a Single Platform

While we cannot say that consumers are not loyal anymore, they simply do not like confining themselves to a single platform in order to search for the best value. The same goes for the operating systems of electronic devices. While consumers might be using a particular system and are comfortable with them, they will not necessarily stick to that single platform across multiple devices if they think they can get better value with something else.

There is also the fact that consumers are more open to experimenting nowadays than they were earlier. So as a company, you cannot really claim someone’s loyalty in today’s world.

Increase in the Use of Cloud-Based Services and Apps

Again, as people look for increased convenience and mobility in all their activities, the use of apps and cloud-based services has increased quite remarkably. Both younger and older people are now taking up the use of apps and cloud-based networks, albeit for different purposes.

While the younger generation uses these systems for entertainment and shopping, older people use it for business and financial management. This, in turn, explains why financial apps are so popular. The fact that gaming consoles are now tapping into the cloud-based data management system is definitely something that goes to their advantage.

More Use of IT in the Workplace

As the use of multi-functional devices increases, it continues to fuel the consumerization of IT even at the workplace. Using their phones or tablets, users strive to perform work activities in a more efficient and effective manner so that they can increase their productivity. For such consumers, providing devices that can be used in the perfectly efficient way for increased workplace productivity is what the electronics industry needs to focus on.

The Bottom Line

If you are selling smartphones, tablets and gaming consoles to consumers, you have a lot to worry and rejoice about. While the gaming consoles and smartphones markets are slowing, the tablets market is highly accelerated at this moment. However, one of the main reasons why people are staying away from the other two gadgets is basically the extremely high price of these items.

One way to lure more customers to these markets is by providing them at more affordable prices, which you can do if you are dealing with used and refurbished electronic goods. In addition, consumers are really looking for devices that can provide multi-functionality but at an affordable range. While it is in the hands of manufacturers to add functionality to these devices and follow consumer trends, you can make it more affordable for them through smart retailing options.

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