TCL phones debut in the US
TCL, a key mobile ODM that operates under the Alcatel, BlackBerry (ending in August) and Palm brands, is about to make some noise under its own TCL brand, which has become a household name in the U.S. TV market. TCL made its initial debut with its Plex smartphone that was launched at IFA 2019, but the phone had not made its way across the Atlantic. TCL then introduced three new models at CES2020, the 10L, 10 Pro, and 10 5G, and the former two will officially debut in the US on May 19. The higher-end TCL 10 Pro boasts a curved edge display (6.47”), a 64-megapixel with four rear cameras, and is powered by Qualcomm’s upper mid-tier Snapdragon 675 chipset. The 10L, on the other hand, boasts inferior specs (i.e. a larger but inferior display with bezels and a slower Snapdragon chipset), but the concessions are justified by the $250 price tag versus the $450 price tag on the 10 Pro version. Both versions will be available for purchase through the nation’s top unlocked channels Best Buy, Amazon, and Walmart.
The NPD Take:
- TCL already enjoys rich distribution in the U.S. mobile market as almost every major carrier offers the low-end Alcatel phones it builds. Carriers’ low- and mid-tier lineups are quite crowded for newcomers, but TCL can have a shot with the 5G version of the 10 series, which was slated to debut at $499.
- TCL’s strong brand and market positioning in the TV space can theoretically facilitate the sales of the unlocked TCL phones at its distribution partners Best Buy and Walmart. The company should look into a bundle promo strategy to promote its unlocked phones alongside its TV line.
5G gaming anyone?
Qualcomm last week announced the upcoming availability of the Snapdragon 768G chipset, which is an upgrade over the 765G chipset released in December 2019. Like the predecessor 765G chipset, the new 768G boasts the Snapdragon X52 5G modem that is compatible for both sub-6 MHz and mmWave band spectrums, and offer 15% faster graphics and processing performance over its predecessor. The chipset is designed for enhanced gaming performance (hence the G branding) and will initially debut on Chinese vendor Xiaomi’s upcoming
Redmi K30 5G Racing Edition smartphone.
The NPD Take:
- The 768G chipset will initially have a limited market reach considering the size of the gaming phone market. Brands such as Razer or Asus that build gaming-exclusive smartphones have yet to enjoy mass-market appeal. However, the COVID-driven boost in gaming hours might increase the appeal of gaming-exclusive phones when stay-at-home measures ease.
- Carriers are actively seeking ways of marketing their 5G networks and enhanced gaming experience (thanks to low latency) has so far been one of the very branches they’ve been holding onto. Qualcomm’s push on the silicon side will give OEMs additional ammunition to push 5G gaming phones to their carrier partners.
Apple retail strikes back
Apple previously closed down all Chinese retail operations in early February to fight the spread of COVID-19. Many of these stores were opened in mid-March, but Apple then shut down its retail operations outside of China. The company last week revealed that it had opened about 100 stores globally (a little over 40 of them are in China) and that it will gradually open 25 stores in seven U.S. states next week. The company will run routine health checks (body temperature controls and basic surveying of health conditions) to customers walking into stores. All store reps will be wearing face masks and customers will be given masks as they enter into stores. Customers will be able to make Genius Bar reservations as well as pick up items ordered online (though some stores’ delivery will be limited to curbside pick up).
The NPD Take:
- While Apple customers have a higher propensity to shop for smartphones online (versus users of other brands), Apple still heavily relies on its retail storefronts to push its products. A little over 15% of iPhone users in the U.S. purchase their phones directly from Apple, about a quarter of them do so via the online channel.
- Apple’s latest phone, the iPhone SE (2020), has been out on the market for about four weeks now and is already running out of stock at certain channels inspite of retail closures that disable customers checking the phone live before purchasing. The reopening of the Apple stores should certainly help boost sales of the new budget iPhone in the coming weeks.