Dubai:

The smartphone industry is heating up and new phone manufacturers are here to challenge the inarguable leaders. The latest competitors are Xiaomi and Lenovo, which both started selling their smartphones in 2011.

How did Xiaomi and Lenovo move about the Top 5 phone global manufacturers list? By selling beautiful flagship smartphones that are highly affordable and that deliver great performance for the everyday user.

The keywords are ‘beautiful’ and ‘affordable’.

In today’s world, smartphones are becoming a bit of a commodity. So, how do you generally stand out in a commodity market? You need to have (1) strong branding, (2) aesthetically appealing products, (3) pricing that’s compelling enough to get someone to give you a shot, and (4) some type of truly unique feature that elevates your product to the top.

Xiaomi and Lenovo are proof that there is space to compete in the smartphone arena as consumers become more price-sensitive and smarter with their mobile purchases. Both companies are playing well in the price and aesthetics fields.

People can purchase a Xiaomi or Lenovo device with similar specs and for 30 per cent less than the price of the equivalent model of one the two biggest phone manufacturers. Apple has done quite a good job by not falling victim to the commodity cycle of the smartphone industry, capitalising on its brand value and unique positioning vis-a-vis competitors.

The company has its unique operating system, keeps things user-friendly and simple and, more importantly, continues to lift its brand among the clutter through marketing and advertising.

Going by the above mentioned four major factors, I’ve been giving some thought to the companies that could compete in the phone manufacturing business — compete well that is.

But who can compete, lead and genuinely stand out by shaking things up?

Out of all the different electronics manufacturers that I could think of, one stood out. This one has built equity that no other smartphone manufacturer can undermine, and can capitalise on strong brand love, superb design experience, a solid track-record of delivering products people adore and a unique selling proposition to top it off.

The answer is Nintendo. It may not be so obvious on the surface, but let me explain.

The company has been developing its video game platforms and games since the 1970s and continues to do so today with great success. Through its experience and clear consumer understanding, it delivers great products and continues to innovate — an attribute at the core of any smartphone manufacturer that is serious about staying in the business … for centuries to come.

Nintendo can also play (pun intended) in this industry by leveraging its multiple games and bringing them to its smartphone devices. This would be one of Nintendo’s truly unique value propositions that cannot be emulated by anyone else. From a brand value perspective, people are very passionate for their new consoles, and wait anxiously for them to come out.

From a product development perspective, Nintendo has what it takes in manufacturing expertise, knowledge and consumer market insights to compete with the best-of-the-best in the smartphone arena.

There are, of course, many steps to take and challenges to overcome for Nintendo to grow into the Top 5 phone manufacturer list, but I believe the juice is worth the squeeze. With the right talent and investments, this could be a very fruitful business for Nintendo in the long run.

Some may argue that if Nintendo begins to develop smartphones building on its extensive knowledge about consumers’ user experience, it might risk cannibalising some of its other products. However, this is already happening as consumers look to game in their current smartphone devices.

— The writer is Digital Director, SMG Dubai.