It was recently that I asked here on Mobility blog the question, for how much longer shall the smartphone market remain this profitable?
Many respondents were of the opinion that the smartphone market would yield greater returns for a long time. I deliberately kept quiet though I disagreed with that general flow of thought.
Well, we have it on good authority from Forbes that the feature phone market is now more profitable than the smartphone market. Here is how the Forbes article opens the subject:
For many handset vendors, the world has turned upside down. Nokia‘s $40 feature phones are vastly more profitable than Sony Ericsson‘s $200 Android models. This is not how the smartphone revolution was supposed to turn out.
Well, that didn’t take long! Just about four weeks after my article.
Yes; the feature phone market is shrinking, but also consider that there are now very, very few feature phone manufacturers (almost everyone has abandoned that field for smartphones), and your guess is as good as mine who are benefiting from this shift.
Most people will agree with the Forbes article that this is not how the smartphone revolution was supposed to turn out. Not me. I saw this coming.