Phone firms dialed in on niche markets
Adrenaline junkies and busy mothers among targets for gadget companies
BARCELONA — Phones rugged enough to survive falling from the sky or resistant to foaming hand soap — just some of the special features mobile phonemakers are offering to appeal to niche markets.
so a niche “The phone enormouscan smartphonestill that that sellis hundredseven targeting market havingof is a thousands,units over if its not life,” millionssaid Ianof Fogg, head of mobile research company IHS.
“1.5 billion smartphones will ship in 2017. Even a company that is targeting a fraction of a percent can still have a product with very significant volumes.” Several “niche phones” were on display at the Mobile World Congress in Barcelona, which wrapped up on Thursday, seeking to attract markets ranging from adventure sport enthusiasts to busy mothers. Bullitt Group, a small British company, showcased its extremely rugged phones that carry the branding of US construction giant Caterpillar which can withstand heat up to 120 C and temperatures as low as -20 C. The devices are also waterproof and come with a thermal imaging camera. Bullitt sells over 1 million Caterpillar phones a year. They are popular with ski instructors, builders and others with rugged jobs or who like outdoor activities.
The phones have an ardent fan base. Videos posted on YouTube by satisfied customers show the devices surviving falls into fresh cement, falling down a flight of stairs or being run over by a car.
“We have even had one of our phones fall out of someone’s backpack when they were parachuting and land and work afterwards. It got banged up on the way down but it was still working,” said Bullitt’s chief executive Peter Stephens.
Bull itt plans to launch a Land Rover-branded phone this year that targets adventurers.
The company is reluctant to reveal details but Stephens said it will “have elements that appeal to someone who is away from energy sources for a very long time”.
Doro, from Sweden, began focusing on easy-to-use phones for the elderly a decade ago and is now the sector’s market leader in Europe.
The devices feature large icons, easy menus and loud, clear sound as well as an alarm to alert relatives in case its user needs help.
The company also makes it possible to manage its phone’s settings through a web service so more tech-savvy friends or family can help users add contacts or adjust the device’s volume from miles away.
Smartphones with extra strong security measures to prevent hacking were also on display that target financial sector employees.
Japan’s Kyocera launched a new smartphone last month that is resistant to foaming hand soap and includes an app that allows users to scroll through recipes using just hand gestures.
The features are convenient “for people like busy mothers,” said the company’s general manager for strategic business planning, Takashi Nohara.
However, reaching customers who may be interested in a niche phone can be a challenge, said David Eberle, the vice president of French firm Crosscall which makes phones geared for outdoor activities.
“Most users do not know that something else exists in the market,” he said.
The company sells its phones in sporting goods stores.
“The real challenge for these small brands, these small niche products, is finding what volumes do they need to be profitable,” said Fogg.