Strategy Trumps Sentiment as OEMs Skip Canada for New Feature Launches
Source: Counterpoint Technology Market Research
Along with the issue of a small population, the Canadian market is not a good ground to test a device due to the retail channels and additional costs. Without a few iterations of a device to prove the durability, the trends of foldables in Canada are not as strong as in other regions. With a small population and macroeconomic headwinds weakening the Canadian dollar, the market retails devices at comparatively higher prices. This in turn has resulted in a longer holding period for devices to avoid upgrade costs for a new device. And when a device has a hardware change like a hinge that can evoke doubts over its durability, Canadians are left hesitant on shelling out the cost.
Samsung had already considered these problems in 2019. The Galaxy Z Fold was released in South Korea on September 2019, seven months after the February 2019 announcement. The limited release in Canada started in December 2019, after there was much chaos over the hinge’s durability that already had Canadians clutching their wallets with concern. After Samsung also overcame carrier certifications, marketing costs and other hoops to put a new device in the Canada market, the Galaxy Z 2 series had a smoother launch in September 2020. It was not only launched in Canada but also made available exclusively through Bell.
Along with dealing with the uncertainty over new hardware, Google also needs to partner with Canadian carriers to achieve the greatest reach in the population and make the device affordable through trade-in offers, bundle plan discounts or device-return leasing options that Canadian carriers often push.
Due to its small population, high data costs and closing of ranks between carriers, Canada is not a feasible market for OEMs to launch a ‘test’ device. One perk that Canadians can look forward to is that once these devices do reach the market, often the bugs are worked out and the user experience has already been enhanced due to initial feedback from other countries.
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Team Counterpoint
Counterpoint Research is a global industry and market research firm providing market data, intelligence, thought leadership and consulting across the technology ecosystem. We advise a diverse range of global clients spanning the supply chain – from chipmakers, component suppliers, manufacturers and software and application developers to service providers, channel players and investors. Our veteran team of analysts serve these clients through our offices located across the key innovation hubs, manufacturing clusters and commercial centers globally. Our analysts consistently engage with C-suite through to strategy, market intelligence, supply chain, R&D, product management, marketing, sales and others across the organization. Counterpoint’s key coverage areas: AI, Automotive, Cloud, Connectivity, Consumer Electronics, Displays, eSIM, IoT, Location Platforms, Macroeconomics, Manufacturing, Networks & Infra, Semiconductors, Smartphones and Wearables.