The GfK data […] shows it may have been a troubling quarter for companies offering devices in the midrange of the market at prices between $250 and $500. In the two biggest smartphone markets — North America and China (which also account for the lion’s share of worldwide revenue) — consumers were most interested in higher-end smartphones that cost $500 or more. In the US, low-end handsets that cost up to $250 also proved popular among consumers.
The findings show little is changing in the smartphone space, as consumers continue to favor products that either sit at the top of the market or come in at a low price point.
The challenge of launching a product at mid-tier:
- High-tier devices come down in price and bring their reputation with them.
- The mid-tier is crowded with devices from players who can’t compete in high-tier.
- Crucially, mid-tier product “budget” often gets peanut-buttered across features. That makes it difficult for a product to stand out, because it probably won’t have any notable advantage.
So, the products – and sometimes the companies – get “stuck in the middle“.