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Apple/Samsung dominance is forcing distributors to change business model

Manny Pham
July 2, 2018

Other vendors are fighting for 15 per cent of the UK mobile market market 

Mobile distributors are having to change their business model due to the Apple and Samsung duopoly on smartphone sales, according to leading distributors.

“The main challenge is that the market is dominated by two vendors with tier two brands fighting over less than 15 per cent market share,” Westcoast head of mobile Darren Seward told Mobile News.

“It is difficult for other brands to differentiate themselves. The ones  doing well are literally buying their way into the market. This makes it difficult for some of the legacy brands to remain relevant without the massive marketing budgets available to the top two.

“In reality, the products these tier two vendors are bringing to market often have the same or better technology at a more competitive price. But it is difficult to persuade the end user of that”.

Eurostar Global’s Ewan Davies says “Duopoly” of Apple and Samsung represents a huge challenge to the distribution sector.

“Many competitors with direct relationships with these vendors have little room to manoeuvre as they are tied into increasingly challenging KPI vendor targets. These relationships are changing the behaviour of the traditional business model. The way they are transacting is beginning to resemble a fulfilment partnership as opposed to the traditional distributor model.

We are looking to emerging manufacturers to help combat this. Chinese Vendors have made significant progress with Android products that now compete on spec, quality and beat their competition on price”.

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