Luxury Portable Consumer Electronics in the United Arab Emirates

PROSPECTS

Limited luxury phones due to competition from smartphones

When it comes to luxury phones, most people prefer to opt for tried and tested high-end smartphones. Many affluent consumers do not see the value in spending a great deal of money on a luxury mobile phone when a newer, more up-to-date phone may hit the market soon.

Non-luxury consumer electronics are tough competition

Due to its niche nature and lack of awareness, many consumers do not think it is justified to pay many more times for a similar product that merely differs due to unique design and brand equity. Apple Watch is the leader in terms of luxury smartphones with a fitness tracker, which is a trend that is fuelled by the health and wellness trend.

Collaborations are the name of the game

Porsche and Huawei, Apple and Burberry - marriages between luxury brands and technology are becoming more common. With respect to the latter pairing, Burberry has created two iOS apps, one is the consumer app that includes direct messaging and the other is specifically designed for Burberry employees.

COMPETITIVE LANDSCAPE

Luxury brands focus on wearables

Storied luxury brands such as Louis Vuitton have launched their own versions of luxury wearables over the review period. In the case of Louis Vuitton, the launch of smartwatch Tambour Horizon, targeted towards male consumers.

Luxury wearables now sole subcategory within luxury portable consumer electronics

Following the collapse of British luxury mobile phone brand Vertu, the only major brand in the subcategory, in 2017, luxury portable consumer electronics now consists solely of the luxury wearables subcategory. With consumers having rejected luxury mobile phones in favour of the functionality, compatibility, and value of standard smartphones such as Apple’s iPhone, Samsung’s Galaxy and Google’s Pixel models, which they can then accessorise with cases from luxury leather goods brands, the return of the subcategory is unlikely.

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