Obviously its saturation point that Junko meant. "tipping point" is normally used to refer to start of a high growth phase.
"Financial analysts are acknowledging that they made hopelessly optimistic forecasts for smartphone sales"
We already know, these guys arent the smartest. Dont we?
Are we talking about a tipping point or hitting a saturation/feature curve?
Remember when we paid $6000 for a desk top or laptop of somewhat high performance? Now for $1000 we can get a PC that is pretty close to the tops in terms of performance, crazy gamer PCs aside (and no offense intended). There has always been lots of money to be made in the PC space though because as prices declined, unit shipment increased.
The phone market is different. There is already fairly high penetration albeit the highest end phones still have quite a way to go for penetration.
However, just like the PC, we will hit a point with phones where there are really no more features to pay for or at least to demand high end prices. There are limits to what a phone in a given form factor can or that you would want it to do, even with an augmented reality user interface. Given that situation, and hitting saturation, it is only to be expected that total smart phone sales (in dollars, not units) will eventually decline. Such is the world of tech where things get cheaper to make.
Given Nokia dominated the feature phone market in the past decades, they must have effectively managed the cost to gain a substantial market share. Will Nokia come back as a dominate player in the next phrase of smartphone market?
On the other hands, will Apple change their strategy to build a low end smartphone, giving up their position of prestige in the electronic market?
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