Latest smartphone feature: kill switch

Smartphone theft is a global problem, as the BBC reports, and growing worse year by year.

However, since Apple added a kill switch to its iPhone and iPad operating systems in September, 2013, fewer of its mobile devices have been stolen. Why? Because once owners activate the kill switch, the device becomes useless (except for its parts). Thieves can't get at personal data or use any apps or features, which protects the customer's privacy and makes thieves less apt to steal mobiles they can't easily convert to cash.

The Mercury News in Silicon Valley reports:

In the first five months of [2014], thefts of Apple devices fell by 17 percent in New York City while thefts of Samsung devices -- without a switch -- increased 51 percent from the same period a year earlier.

The pattern has been similar in other areas: Theft of Apple devices in London dropped by 24 percent after the kill switch was added, even as theft of Samsung mobiles increased.

Samsung added a kill switch earlier in 2014. Now, feeling competitive and legislative pressure, Microsoft and Google will add a kill switch to their Windows and Android mobile operating systems. As a result, more than 90 percent of new smartphones will be protected--if customers activate the kill switch mechanisms.

In other words, even with all the fancy apps and features available on sophisticated smartphones, the one that may be the most practical is the kill switch, if it can save customers from the aggravation and inconvenience of losing their devices to thieves.

When will UK laggards buy smartphones?

Above, the familiar graph showing how new innovative new tech products are adopted first by innovators, followed by early adopters, early/late majority segments, and finally--the laggards.

What about the pace of smartphone adoption in the UK market? According to experts, the smartphone will reach a penetration level of 80% by January of 2015. That means buyers from the late majority segment are currently adopting smartphones. By the time the laggards get around to buying smartphones, the market will be well into maturity and non-smartphones will be all but finished as mainstream products.

In the UK, smartphone users spend more time on their devices than users in other countries. Content providers are also affected by this penetration level, because more smartphones means higher demand for mobile entertainment, games, etc.

And thanks to this high penetration level, marketers like Sony, Apple and Samsung will be playing a replacement game, which calls for different marketing strategy and tactics (particularly pricing). These three brands accounted for about 75% of the smartphone market in the UK last year.

Already, Apple has debuted lower-priced iPhones, for example. Samsung and Apple are also adding new features (like biometric security) to attract consumers who trade up from older phones.

When will the UK market reach saturation? 

Samsung vs Apple: The supply chain holds the key

Largely invisible to customers, your supply chain is a vital element in marketing. Do you have the right suppliers, the right materials and the right inventory levels to deliver enough products to meet demand?

Samsung is currently experiencing a supply chain problem that's delaying its intro of the Galaxy S4 smartphone in some markets. Why? Because global demand is unexpectedly high and Samsung's suppliers simply can't keep up.

Unfortunately, other elements of Samsung's marketing plan have already been implemented--including glitzy product launch parties, ads, and other activities. Customers are therefore seeing promotional messages and getting interested in the S4, only to learn that they can't buy one yet.

And that's a problem because Samsung is a major challenger to Apple in the smartphone market. In fact, Samsung sells more Galaxy mobiles than Apple sells iPhones. But if the supply chain can't keep up with demand, Samsung's customers (and distributors) will have to wait. Delays could change the way customers view Samsung and affect their ultimate buying decision.

Meanwhile, Samsung's profits have reached record-high levels. And, interestingly, Samsung is an important supplier in rival Apple's supply chain, making special microprocessor chips for iPhones. Both firms are clearly profiting from the continued increase in demand for smartphones.

China's Huawei targets Europe and America

Huawei, which made its name in telecommunications, is getting ready for a major marketing initiative in Europe and the US. This fast-growing firm (less than 25 years old) already has 110,000 employees. Its expanding portfolio of offerings includes products classified as "cloud" (applications and software for storage), "pipe" (networks), or "devices" (smart phones and other equipment for home and industrial use).

For the past decade, Huawei has been establishing research and development centers outside China to get to know global customers' needs and prepare goods and services for multiple markets.

Now Huawei--not yet a globally-recognised brand--is planning to challenge some of the best-known brands in the business world with advanced smart phones and tablet computers. It has agreements with mobile operators in several European nations and is lining up distributors for retail placements.

To succeed, Huawei will have to convince would-be buyers (and retail partners) that its brand stands for something unique and superior. Price is always a factor, especially in a mature market such as that of smart phones. The tablet market is currently hot; Apple is the dominant brand, and every time it releases a new iPad, customers respond.

Still, innovation can capture attention and grab market share in almost any segment of the mobile and tablet markets. Will Huawei achieve its ambitious growth goals?

2011: The Year of the Smartphone

Telefonica Europe--which owns the O2 network--projects that by the end of 2011, one-third of its huge customer base will have a smartphone (up from one-fifth today).

Obviously, smartphones enable users to connect to social media any time, anywhere. Not surprisingly, predictions indicate that social networking will expand even faster in 2011, thanks to the popularity of smartphones. Also watch for more apps and more mobile marketing as the installed base of smartphones grows and grows.

One of the surprises has been how the iPhone, so hotly anticipated when it debuted, is not at the top of the smartphone sales list right now. Instead, HTC phones dominate the top slots. Why? One major reason: Price. The smartphones that compete with Apple's iPhone are cheaper or are being offered at carrier-subsidised prices.

Still, Apple has new iPhone models on the way--more quickly than ever before. By the end of 2011, mobile users will have an incredible array of smartphone choices (if they haven't already upgraded to the latest tech).