By Chris Millington, Managing Director of emporia Telecom UK & Ireland
Changing Focus with Foldables
In their current state, I believe that foldable devices act as little more than a gimmick. The technology is great and the appeal for the younger buyer is very strong, however the costs are simply prohibitive and unaffordable to the groups most tempted. Clearly the older age group have loved ‘clam-shell’ mobiles over the decades and still do in feature phones but there is a long way to go before the value can achieve mass volumes and be a game changer. The current trend in non-foldable smartphones is for streamlined, thin and aesthetically pleasing devices and I expect this to continue for many years to come. Whilst 2023 won’t be the year of breakthrough for folding phones, I do believe that they have the potential to offer real functionality once the technology is refined, costs reduced and realisation that it’s not about the premium buyer, but others such as youngsters and older users where the form-factor is cool and practical.
Vulnerable Brits could Become Disconnected
As Britain’s 3G network switch-off continues through 2023, and BT plans to remove its copper fixed line networks with the digital roll-out, we will start to witness vulnerable people being put in danger as they are disconnected from using their existing products. Many of these people will be elderly, relying on this technology to communicate with family and stay safe. I suspect that if they don’t act now, many network operators will look back on this time and regret not supporting this important customer group through these changes.
Wearables are Here to Stay
I see the growth of wearables accelerating through the new year. In an increasingly digital world, the unanimous adoption of smartwatches and other wearables is almost inevitable. I think this is also becoming a strong desire in the 65+ market. Following the recent launches of true standalone smartwatches for seniors, I believe this user group will develop a strong demand for wearables – as these devices will offer new levels of ease, independence, security, and vitality in a form factor that is suited to the age group.
Smart Homes Will Get Smarter
The majority of smart home tech that is currently widely adopted is too gadget-focused (think smart speakers and connected doorbells). I believe a big revolution is coming that will bring great advancements in home security and utility control to the mainstream. The current state of smart home tech doesn’t serve the customer in the way that it should. I see a big focus on automating house functions in 2023, tech will be tracking everything from user locations to changes in time and weather to seamlessly serve the user without the need for input.
Channel Prices Soar
Upwards price pressures will continue due to currency fluctuations between all currencies and the USD. The UK’s mobile industry will see a continuing price increase in the cost to supply products. With production in China pegged to the USD and supplying the majority of our industry’s products, we will all be paying higher prices in 2023. Because of this, UK price increases are also inevitable as profit margins tighten.
Pressure from Covid Continues
The Covid-19 virus will still be a disruptive force next year. Production facilities in countries such as China, which have a zero-tolerance approach to infections, will see frequent full shutdowns to prevent outbreaks. These regional lockdowns will impact production and supply chain significantly with delays of 4 – 6 weeks due to factory closure, and all areas of the supply chain from component supply to transport to inspection. Unfortunately, we will be seeing regular supply chain problems throughout next year.
Changing Customer Habits
I predict customer behaviours will see a great shift in the coming years due to the increases in the cost of living. Consumers will keep their mobile devices for longer than we are used to – something that retailers need to strongly consider as they plan for 2023. This will also be detrimental to seniors, who may be handed up old smartphones from family members in an effort to get them online at a lower cost. This practice can cause great stress for older users, many of which ideally need a phone that is tailored to suit their needs and easy to use.
The Circular Economy Booms
The second-hand economy will see a drastic increase in demand in 2023. Shoppers will have less disposable income and will turn to resale platforms to buy goods at lower costs. This means that the value of second-hand goods will increase and presents opportunities for mobile networks to consider surrounding trade-in offers. These kinds of offers will be key next year in order to sway consumers to buy new.
Legal Trouble for Vendors
For years there have been issues surrounding mobile vendors, in particularly Chinese manufacturers not paying license fees as recently illustrated in Germany. As the economy is squeezed there will be less space for companies to get away with doing this, and I suspect we will see a sharp increase in the number of court cases surrounding IP issues across Europe.
Innovation Sells
It’s no secret that today’s smartphone manufacturers are struggling to implement true innovations in their new devices. With the rate of new features slowing, it will become harder for mass market brands to differentiate their products and create a buzz around new devices. These challenges mean that consumers will see less benefits in upgrade deals from network operators and will hold on to devices for longer.
The End of Free European Roaming
In unprecedented economic times, network operators will be looking at streamlining their spending in 2023. Benefits that are not profitable, such as offering free roaming across the Eurozone for UK contract holders, will most likely be axed.
Virtual and Augmented Reality Goes Mainstream
The potential of virtual, augmented, and mixed reality is immense, and I can only see its adoption going one way in 2023. These technologies will open up countless new positive use cases. For example, vulnerable people will have a more realistic avenue to stay connected through. The use of Augmented Reality will allow us to connect in a brand-new way that truly merges the real and digital worlds.
