Should Android handset manufacturers start developing only one or fewer devices?

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I was just reading this article:

http://s4gru.com/index.php?%2Fblog%2...ory-oet-review

And think it's a complete waste of money and resources developing mid and lower range handsets. If I was the CEO of HTC, Moto, or Samsung, I would focus on only 1 (flagship) device in each size category.

It just makes sense on so many levels, economically and marketing wise especially.

For example, the current hottest phone for Samsung is the Galaxy S III, which commands the premium price of being the latest and greatest at $200. They can sell the SGSII for $100 and offer the SGS for free (all on contract of course).

Imagine all the engineers and financial resources they can allocate to flagship devices if they followed this model.

Samsung, Motorola, HTC, please dump all your existing mid and lower range lines of handsets.

Do yourselves and Android lovers a great service!

And lastly, please use the same name for each device for all the carriers. None of this one unique name for each carrier for the same device bullcrap!

It would make sense only if they didn't make a profit on these phones that they push out but obviously they do so they will continue pushing out as many as possible. Luckily it seems Samsung is the only company left doing this.

Sent from my Galaxy Nexus using Tapatalk 2

Apple actually has a patent on that business model.

Some people can't afford to pay flagship model prices.
More handsets with different ranges will appeal to more customers.

There is also those who don't need everything a top of the line phone has.
No way I am going to pay for the top of the line phone for my 12 year old son.
He doesn't need all the features, plus the fact that since he's a kid there is a greater chance of the phone meeting some kind of accident.

Originally Posted by lowandbehold

Apple actually has a patent on that business model.

Apple has a low end, mid range, and high end iPhone in the market (4 - free, 4S - $100, 5 - $200+). Even they couldn't ignore the low end of the market anymore.

This post demonstrates no business knowledge whatsoever. Like previously mentioned not everyone wants a flagship or even a smart phone. You need to cater to a wide range of users.

It's not about focusing all your resources on flagship models for a smaller group. They make a large profit on lower and mid range phones too.

Originally Posted by Sdobron

This post demonstrates no business knowledge whatsoever. Like previously mentioned not everyone wants a flagship or even a smart phone. You need to cater to a wide range of users.

It's not about focusing all your resources on flagship models for a smaller group. They make a large profit on lower and mid range phones too.

agreed, some buy the top end phones and figure there is no need for lower. It is kind of like when you hear "buy a BMW because there is no point to buying a lower quality car" Well what if they put even MORE R&D into it and now the phone was leagues better but cost $900 with a contract renewal? Its about making profit and producing what the market wants. one person once made a ton of money on a pet rock.

Originally Posted by Sdobron

This post demonstrates no business knowledge whatsoever. Like previously mentioned not everyone wants a flagship or even a smart phone. You need to cater to a wide range of users.

It's not about focusing all your resources on flagship models for a smaller group. They make a large profit on lower and mid range phones too.

Well, the point is this.

HTC, Moto, and Samsung can all take huge advantage of economies of scale when they only make flagship model phones. How many components can Samsung share between the Galaxy S I, II, III and soon to be out IV?

Apple is making PLENTY of profit ONLY selling to people who want smart phones.

Originally Posted by Sm0k3d 0uT

Some people can't afford to pay flagship model prices.
More handsets with different ranges will appeal to more customers.

There is also those who don't need everything a top of the line phone has.
No way I am going to pay for the top of the line phone for my 12 year old son.
He doesn't need all the features, plus the fact that since he's a kid there is a greater chance of the phone meeting some kind of accident.

The idea behind this is that everyone gets a flagship phone. You might not have the latest generation of the flagship phone, but it's still a flagship phone from its time.

The Galaxy S I was a flag ship phone and Samsung can now offer it for $0 with contract.

The Galaxy S II was a flag ship phone and Samsung can now offer it for $99 with contract.

The Galaxy S III is the CURRENT flag ship phone and Samsung offers it for $199 with contract.

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When the Galaxy S IV comes out, just phase out the Galaxy S I and offer this:

The Galaxy S II was a flag ship phone and Samsung can now offer it for $0 with contract.

The Galaxy S III was a flag ship phone and Samsung can now offer it for $99 with contract.

The Galaxy S IV is the CURRENT flag ship phone and Samsung offers it for $199 with contract.

DOES THAT MAKE SENSE? I think it's the best business model out there! You can save more costs due to sharing some components across generations and everyone gets a flagship device. That alone does a lot for the perception of your brand. Apple doesn't make a crappy mid or low range phone, so their brand is never associated with cheapness. But, you can get an iphone 4 for cheap now, it's $0 with contract. It's also 3 generations behind...but that also means the parts inside it are cheaper to buy, because they too, are 3 generations behind.

Originally Posted by lowandbehold

Apple actually has a patent on that business model.

I wouldn't be surprised if they tried to patent this business model!