Phonemakers bank on virtual reality, add-ons to ignite sales

Seoul/Barcelona, February 26

From a remote-controlled robot camera to a sonar-enabled smartwatch to locate fish to reel in, smartphone makers are launching new devices and services in a bid to drive sales for their handsets and set themselves apart in a crowded field.

Waning global demand for smartphones, especially in key markets such as China, and margin-eroding, cut-throat competition are ratcheting the pressure on manufacturers to find ways to convince consumers to pay up for a little bit extra.

LG Electronics Inc, for example, launched modules for its G5 flagship phone, allowing users to add on accessories to provide better audio and pictures. It also unveiled a new virtual reality headset robot camera accessory that rolls around like a ball while capturing images and video.

“Simply improving what already exists won’t win acceptance from customers as unique,” LG Mobile Chief Juno Cho said in Seoul ahead of the Mobile World Congress trade show, which ended this week in Barcelona. “At this point you have to create value through a completely different approach in order to attract interest.”

At the event, other phonemakers including Samsung Electronics, Sony Corp and ZTE also launched devices to pair with their phones ranging from a 360-degree camera to an earpiece that whispers notifications to users.

Weak global economic conditions are further clouding prospects for what is expected to be another tough year for the mobile industry. Researcher IHS tips the industry’s revenue to grow by just 1.1 per cent this year to $373.1 billion, well below an expected 6.3 per cent shipment growth.

Against this backdrop, smartphone makers are trying to prop up sales and protect margins through accessories and features. In addition to virtual reality, firms such as Samsung, and Xiaomi Inc are pushing into mobile payments services to further differentiate their products.