GADGET GIZMO MARKET SPECIAL
High-priced
phones by several brands are facing competition from low priced and
feature-rich phones
THE FLAGSHIP smartphone.
A term coined by tech analysts and the media to denote a phone with the
absolute best looks, specs and features. This was lapped up by the smartphone
makers as it also meant that the brands could charge a gut-wrenching premium on
their top-of-the-line device. Customers that had the money only bought a
flagship, while others aspired to ‘one day’ be able to bring one home amongst
thunderous applause from friends and relatives. It was all a welloiled machine
and the brands, retailers, media and the customers were all very happy. And
thus the fairytale of the flagship continued. Till a new series of rather
unflagshiplike twists have wrenched this market wide open.
HOW IT HAPPENED
The smartphone market in
India is changing dramatically. It was first a very clear ‘go buy it at a
physical shop’ where the shopkeeper showed you a sealed box and told you to buy
it as is – no demos! Then came the online exodus, where every single morning
was corrupted by full-page advertisements in every newspaper that showcased how
God had descended on Earth in the shape of a new mobile phone! You had to buy
it sight unseen. Some brands continued to play offline and a little online
(Apple, Samsung) while others dominated the online-only field (Xiaomi, OnePlus,
Le Eco and about 50 more). But flagships held their place in the sun either
way.
IT ALL GOES TO HELL
This nicely
sliced-and-diced market has recently gone completely hellish. Price points of
all flagship phones (for a flagship phone the price point was always the Holy
Grail) have gone awry. The iPhone 6S dropped to about 40K from 62K, the Samsung
Note Edge went to 34K and pretty much any top-level phone that was introduced three
months back was suddenly selling at very nonflagship prices. It was all very
heartbreaking for this carefully curated and constructed flagship business.
THE NEW TWIST
And into this ruffled
category has come a new and far more gut-wrenching twist: The Mi 5. Xiaomi has
always
LOST BATTLE
The iPhone has always had
issues about battery life and even the Samsung S7 (extreme left) fails in front
of the Mi 5 played and dominated the 6K to 12K market and has never been
successful above that. The Mi 5 is priced at ` 24K, a price point that has
sounded the death knell for any brand other than Apple and Samsung. Yes, HTC,
LG, Nexus, OnePlus and a few others have a few devices that are priced higher,
but most are either happy with low sales or are still trying to really crack
the market. For Xiaomi to want to box way above their weight is a ballsy move.
Can they pull it off to further disrupt this delicately balanced flagship
business?
To be fair, the Mi 5, at
about 24K, should be pitted against the phones in the same price range. But
then Xiaomi’s clear claim is that this is a zero-compromise flagship phone at
less than half the price. So, let’s take that as the challenge and pit it
against the two top flagships in the world.
Mi 5 VERSUS iPHONE 6S
VERSUS GALAXY S7
The Xiaomi, with its very
light all-metal frame, glass body and curvy design, easily outpaces the iPhone
and gives the S7 quite a fright too. It’s the lightest of the lot and feels
really good in the hand. From its hardware and specs, you really can’t complain
as it’s the first phone in the country with the 820 processor from Qualcomm and
blazes through every test. The screen section has the Samsung with a better
resolution, the Xiaomi second and the iPhone coming in last. In terms of
camera, the Mi 5 has the better optics on paper but the S7 and 6S are the best
in the business. Still, with optical image stabilisation built in at this
price, the Mi 5 actually holds its own and gives them both a serious run for
their money. Battery life is where the iPhone loses out badly, as its never
been really good with that. The S7 and the Mi 5 have similar battery innards
but the FHD screen on the Mi 5 gives it a major edge in terms of the amount of
time before it dies on you. Thus the Mi 5 at about half the price of the other
two flagship giants, does seem to match up and out-manoeuvre them in some
departments.
WHAT HAPPENS NOW?
How does the flagship
device business, which has already been rudely jolted from its delicate
slumber, handle this? Well, if Xiaomi can convince people that owning an Mi 5
is not only equal in hardware and features but also in bragging rights and
addresses the premium part of the equation, then they will be sitting pretty.
The ramifications though
are much larger. If a nocompromise flagship can be sold for around 20K and
still have a premium attached, then how would a company justify price points of
60K? The world of technology marches on leaving behind a dramatically altered
flagship business in its wake! And while Xiaomi may just be starting that off,
many others may follow suit. What’s next? A flagship 10K phone that beats the
pants off anything priced at any point? Well, it may just be round the corner!
·
Rajiv Makhni is managing editor, Technology,
NDTV, and the anchor of Gadget Guru, Cell Guru and Newsnet 3
HTBR24APR16
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