Essay Example on Smartphone manufacturers do not try to earn as much as Possible

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The vast majority of smartphone manufacturers do not try to earn as much as possible on their sales Not counting the three biggest players the goal of the companies is the smallest possible loss Is it not better than to give up unprofitable business Well it's not that simple How many companies are involved in the production of smartphones I do not know if there is anyone who can count it How many companies are getting rich on their smartphones The bill is simpler here because the fingers of one hand are enough to count them Even the hands of a tyrannosaur Only Samsung Apple and Huawei earn on smartphones According to the data collected by the Canaccord Genuity analytical company in the third quarter of 2017 the distribution of profits between the three largest smartphone manufacturers looked like this Apple 72 percent Samsung 24 percent Huawei 7 percent It is not difficult to count the three of them collect a total of 103 percent profit on the smartphone market No it's not a mistake Analysts have also simply included the sums that other brands have lost The rest of the smartphone makers are adding to business And that's a good thing From July to September 2017 Sony Mobile lost 21 9 million At the same time LG Mobile reported a loss of 33 37 million dollars HTCclosed the quarter with a figure of 103 million dollars In the subsequent reports of the company they boast that they managed to reduce losses from quarter to quarter 



That the production distribution or marketing costs were only slightly higher than the revenues generated on their sales Why will these companies simply not close unprofitable businesses Virtually every time a company publishes adverse financial results there are questions about the sense of keeping an unprofitable business alive Sony should probably stop making phone calls wrote The Verge in 2015 It turns out however that the producers may have a different motivation than the illusion of faith that the next quarter will be closed above the line The statement of the head of Sony throws some light on this subject Kaz Hirai head of Sony touched on the smartphone market during one of the last speeches as reported by The Guardian An interesting statement came from his mouth KAZ HIRAIHead of Sony Corporation The reason why we do this is not that we think that smartphones are the future but that we need to have some devices connected to the network for communication If we leave this area we will not have the opportunity to participate in the next paradigm shift It's not about today s smartphones it's more about looking beyond smartphones what we re going to do and being a player in this field preferably a leader This is a strategic reason why I want to be sure that we stay not in the smartphone industry but in the telecommunications industry According to the head of Sony smartphones should apparently be treated rather as a transition technology in the telecommunications market In his opinion when the next revolution comes those who are already engaged in the production of network connected devices will have the best chance of survival What should be the paradigm shift 



This Hirai does not specify However he is not the only person who thinks that in the not too distant future technology may appear which will replace smartphones Analysts Piper Jaffray predict that within a dozen or so years Apple will stop producing iPhones In their opinion they will be replaced by an extended reality in which many technological giants have great hopes MARK ZUCKERBERGThe head of Facebook We do not need a physical TV We can buy a TV app with a dollar put it on the wall and watch it It's really amazing when you're wondering how many physical things we have do not have to be physical They can be simply digital and created by children all over the world who do not need access to the factory to create a TV set The head of Facebook said the above words in April 2017 Zuckerberg is a great enthusiast of augmented reality In his opinion glasses or lenses that impose virtual objects on the actual image can replace virtually all the displays we use in the future via GIPHY Regardless of whether smartphones will be replaced by AR goggles headphones controlled by artificial intelligence straight from the movie Her or some futuristic implants Sony believes that smartphone days are already counted Likewise probably think other producers who although constantly on the sale of phones lose stick to this industry to survive to the next telecommunications revolution Of course the reasons why non intussing manufacturers produce smartphones may be more The head of Sony spoke exclusively on behalf of the corporation he was running Other companies may have a different motivation For some it is probably profitable to produce smartphones even for image related reasons It is a dynamically developing industry that like no other allows almost every year to show off new solutions to the world Sony is probably satisfied as soon as people hear that they were the first to create a phone with a 4K screen Such things can affect the perception of the entire brand and drive the sale of other products Smartphones also generate much more interest than other products If we were to stand in the center of a big city and ask passers by about the latest flagship Sony or LG probably more people would manage it than if the question concerned even TVs One thing is certain even if a business brings losses sometimes it pays to keep him alive in the long run


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