Is it worth launching a Mini Smartphone?

Data casts doubt on mini strategy

Some very interesting data has been thrown up by grey market pricing group phoneLot.com. It points to the surge by manufacturers to replicate their flagship smartphones in a Mini version, but is this going to grab market share from competitors or simply half the demand for the original phone? Sony Ericsson have been the latest manufacturer to follow the Nokia N97 mini and the HTC HD mini, by launching their X10 mini. But have they done their homework? Possibly not according to Dan Quinn, Project Manager. “Had Sony Ericsson reviewed gsmExchange’s Price Watch, they would have seen that since its launch, the Nokia N97 mini’s price has nosedived, shedding €70 off the average wholesale price since November 2009, ” he said. While the N97 also decreased in value, the fall has been less severe, limiting to an average wholesale price of €318 from €350 since November 2009.
Quinn described the situation as difficult, pointing out that demand for the N97 mini has consistently been running at 50% of supply on the grey market, even during the run up to the holiday season in December which is traditionally a time of short stock. When compared to the N97, which demand outstripped supply by nearly 25% in the same period. Overall, it is questionable whether this could be considered a success and if these actual statistics were common knowledge, would it have altered Sony Ericsson’s strategy. Since the turn of the year, demand for both Nokia models continues to fall, in April 2010, demand stood at just under 33% of available stock on phoneLot.com for the N97 and about 65% of supply for the N97 Mini although the quantities being traded is considerably less for the mini model.


phoneLot.com is the fastest growing online trading platform for wireless retailers and wholesalers. It is dedicated to offering a purchasing solution to businesses looking to buy between 5 – 200 phones per order. Launched in February 2010, phonelot.com has over 4,000 members using the platform as their primary source for mobile phones and accessories. gsmExchange.com is the world’s leading wholesale trading platform for the mobile phone and accessories industry. Established in 1999, gsmExchange enjoys the status of world No.1 in this niche. There are over 40,000 members on the gsmExchange network and the platform is visited by thousands everyday looking for new customers or suppliers across the world.

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