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Phone makers battle declining sales with camera software, rugged cases and quirky style

After suffering the first sales decline in nearly 15 years, mobile phone companies are trying to stand out by offering unique features, or joining the latest arms race: advanced photography software and artificial intelligence

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The Nokia 3310 at the Mobile World Congress in Barcelona. Photo: AFP

Are we reaching what is known as “peak phone”? Analysts at Gartner last month revealed that global sales of smartphones saw the first year-on-year decline since the firm began tracking the international market in 2004. The 5.6 per cent decline over the fourth quarter of 2016 suggests demand for mobile handsets worldwide may have levelled off.

Another Apple analyst predicts weak growth in iPhone sales this spring

Five years ago it was common to change your device every six months, perhaps even more often, as brands jostled for market share using exciting new features.

All new designs, ever bigger sizes and increasingly good cameras have led to where we are now; all smartphones now look the same. Inside, too, they’re virtually indistinguishable. So when did you last change your smartphone?

Anshul Gupta is a research director at Gartner.
Anshul Gupta is a research director at Gartner.
“Replacement smartphone users are choosing quality models and keeping them longer, lengthening the replacement cycle of smartphones,” says Anshul Gupta, research director at Gartner.
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“Moreover, while demand for high quality, 4G connectivity and better camera features remained strong, high expectations and few incremental benefits during replacement have weakened smartphone sales.”

Energizer Power Max P600S.
Energizer Power Max P600S.
Despite – and because – of this slowdown, the market has seen the rise of mobile phones that break away from the norm. A good example would be last year’s Nokia 3310. With just a 2.40-inch, 240x320 display and a two-megapixel rear camera, the 3310 has done remarkably well in mature markets over the past 12 months, catapulting Nokia (or rather, the brand’s new licensee, another Finnish company called HMD Global) back into the global top 10 phone manufacturers.
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The brand will try to repeat that success with the Nokia 8110, or the “banana phone”, which launched at this year’s Mobile World Congress (MWC) held in Barcelona last month.

And Nokia is not alone – there were other models shown at the world’s biggest mobile phone trade show that boasted the kind of features no mainstream phone offers: a tough touch screen, a saltwater-proof chassis, and a bigger battery.

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