We posted a poll on Google + asking folks if they think that the $400 flagship killer has a negative effect on other OEM’s. The thing is that with this slew of inexpensive device hitting the market full force, other companies that are used to selling their devices at a certain prices are getting flack because now their devices are now considered over priced. People would say, “Why should I pay $700 for this phone when I can pay $300 less for another phone that does basically the same thing?” What are the results?
The pole capped out at about 136 votes and the results were somewhat close with 59% saying that they agree, and 41% saying that they don’t. Though more people who voted agree, more people who commented disagree.
A comment from Nate Brewer states,
“I don’t think so, because brand loyalists and people with money don’t mind shelling out the extra money for whatever device they want. It just makes us budget people able to afford similar quality and specs for a lot cheaper, thus making everyone happy…”
An excellent comment. It takes into account brand loyalty. People who are dedicated, heart and soul, to a certain brand or device will certainly pay the extra cash for what they want. So, why should a company like Samsung or Apple feel that they should lower their prices because ZTE launches a $400 flagship? Similar to that comment was this one from Jamaal Southwell.
“No, they most certainly don’t have to lower their pricing. What the people who voted ‘yes’ are not taking into account is brand recognition. Apple, for example, has been overcharging for their entire product line for years, but as long as it’s got that logo, it’ll sell. These new age flagship killers may or may not tip the scale as the years go on, but right at this moment in time, you’d be hard pressed to meet Samsung or Apple’s numbers.”
This one brings up the subject of brand recognition, like the last comment, but it also brings up sales numbers. He brings a great point; while Chinese OEM, OnePlus, has caused some waves with it’s approach to pricing, it’s still vastly less popular than the big boys who’ve been on the map for years. Companies like Samsung, Apple, and LG sell tons of devices and have made their mark in many countries. As stated, the $400 flagship may have a larger impact in the future, but for now, it’s more likely that you’d walk up to a person and see them with a Galaxy S7 or iPhone 7 than an Axon 7.
Comments like the ones above and “It proves that it’s not the hardware that you’re paying for, but the name.” [Graham Thompson] tells us that, as it stands, it’s great that we have the option to pay so little for a device that’s touting most of the bells and whistles of phones you’d have to pay almost a grand for, but it isn’t enough to disrupt the market in the way that companies like ZTE and OnePlus had planned.
On the upside though, these companies are building their own loyal fan bases. It’s indicated by this comment from Laurenzo Victoire, “They showed us that a high speced phone can be cheaper.” People who want these great devices for good prices will most definitely notice these companies. While they won’t make too many people turn away from the Galaxy phones or the iPhones, it still bares mentioning that the flagship killer is still a growing market. Who can say at this point what the effect of this will be? What do you think? Let me know in the comments below.
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