Competitor Strategies in Consumer Electronics

Delivery

This report comes in PPT.

Key Findings

Consumers are looking for bargains in advanced tech

Prolonged economic uncertainty has created new spending norms, as many consumers continue to be concerned about their finances. However, consumers are not chasing the best deals but rather looking at all-around value, and are still willing to spend on desirable features. This can offer opportunities for mid-priced brands that market on the latest innovations.

Apple remains the industry leader, but some regions are proving difficult

Apple Inc outperformed other consumer electronics brands in 2024, despite sluggish sales of smartphones and other electronics, due to its robust brand positioning, enabling premium pricing. However, Apple faces fierce competition from local players offering lower priced Chinese alternatives in markets such as India.

The rise of smart home and expansion to appliances is a clear advantage to some companies

Increasingly, many leading consumer electronics companies are expanding into consumer appliances, with LG and Samsung, for example, now well established in major consumer appliances. Having an offer in both electronics and appliances is a sound strategy, especially with the rise of smart home and connectivity, nudging customers to be part of one ecosystem.

Samsung and Apple expected to maintain their leadership

Samsung and Apple are expected to continue to lead the consumer electronics market, benefiting from huge resources, brand recognition and large budgets for R&D. Apple is projected to continue to lead, supported by the continued expansion of its userbase and through the development of auxiliary devices, such as wearables and earphones.

Artificial intelligence (AI) continues to be the key trend

The key trend in the industry remains AI; however, explaining the benefits and added value of AI-features will continue to be an important strategy for manufacturers aiming to leverage AI-upscaling opportunities, as some consumers remain sceptical and cautious.