The smartphone market is sending energy companies a decidedly mixed message. In the past year, unti sales have dropped by 11.2%, yet the Average Sales Price reached a historic high, $790 in the first quarter of 2023, up dramatically from $671 in Q1 2022.
The smartphone market has seen diminishing sales recently. That trend continued in the first quarter with device sales reaching 34.6 million units.
Suppliers have taken a multipronged approach to address the problem. They have raised pricing on their high-end models. The $800 and above market segment, epitomized by Apple’s Pro and Pro Max, grew by 32.9% year-on-year. The $200 and below segment saw dramatic shipment reductions despite vendor price decreases.
Use Cases Drive Energy Company Smartphone Economics
So, what does the current market conditions mean for energy companies? Their employees use these systems in the office, in the field, and at home. Their use cases determine how the pricing changes impact the business.
Employees who complete office productivity and other long forms content will pay higher prices for devices with bigger screens and more powerful functions. Users who simply input data, such as field service teams, will realize lower costs.
The smartphone market has been turbulent in the past few years. As 2023 unfolds, energy companies need to balance higher prices for top of the line systems versus lower pricing for commodity systems.