Why a Razer Phone Won’t Succeed — The Motley Fool

Razer, that is famous for is gaming-oriented accessories as good as a gaming-oriented laptop computers, recently announced a initial incursion into a smartphone marketplace with a device called a Razer Phone.

The device is marketed categorically during “mobile entertainment,” that presumably means movies, music, and, of course, games.

A male holding and looking during a Razer Phone.

Image source: Razer.

The phone does seem to be designed as a form of smartphone that a hardcore PC gaming fan would enjoy. It has a outrageous battery, a quick and pointy display, strong audio capabilities, and a lot of complement memory. To grasp these brawny specifications, Razer built a comparatively large, complicated device with vast bezels. Razer is clearly betting that a aim demographic for this product would simply trade aesthetics for improved specifications and capabilities. And we consider they’d be right.

Even yet Razer seems to have built a arrange of device that gaming enthusiasts themselves would substantially put together if given a choice to arrange their possess phones, we don’t consider this phone will attain in a marketplace. Here’s why.

Who wants a gaming smartphone?

I consider Razer’s problem won’t be that it didn’t build a right product for a demographic that it’s targeting — on a contrary, Razer’s bargain of a aim marketplace seems utterly excellent. Instead, we consider a aim marketplace that Razer is going after with this product usually isn’t that big.

It’s easy to make a box for gaming-specific cover and desktop computers: Mainstream computers that aren’t privately tuned for gaming applications simply can’t play a latest games a tip diversion developers put out.

A male sitting on a chair with a cylinder of popcorn and a vast splash looking during a Razer Phone.

Image source: Razer.

It’s harder to make that box for a gaming smartphone. The Razer Phone includes a Qualcomm (NASDAQ:QCOM) Snapdragon 835 processor, so it should be some-more than able of personification a many graphically complete mobile games available. That’s good, though a Razer Phone is frequency a usually Android to incorporate a Snapdragon 835 chip — it’s been powering Android flagship smartphones for about 7 months now.

Compounding a emanate is a elementary fact that mobile-game developers aren’t going to take their time to rise games and facilities that’ll work usually on smartphones with Razer Phone-class hardware.

Mobile-game developers tend to advantage when their games are used by as many smartphone users as possible. This means that it’d be a bad business pierce for any mobile diversion developer to deposit heavily in building games that usually work good on inclination with Razer Phone-class hardware.

Razer’s late to a Snapdragon 835 party

And usually to massage salt in a wound, Android flagship inclination are expected to transition to Qualcomm’s Snapdragon 845 platform subsequent year, that should offer graphics and CPU opening enhancements over a Snapdragon 835 used inside this year’s Razer Phone.

Unless Razer somehow manages to fast refurbish a Razer phone to take advantage of this new chip once it launches — something that’s substantially unlikely, given low-volume smartphone vendors like Razer tend not to get dibs on Qualcomm’s latest processors — it’ll shortly not even have a Android phone opening crown.

The really demographic that Razer is targeting — enthusiasts who caring about specs, speeds, and feeds — will have a tough time shopping something like a Razer Phone during a $699 cost Razer is seeking if it doesn’t even have a latest Qualcomm processor inside.

Foolish takeaway

While we conclude that Razer is perplexing to find a shred of a smartphone marketplace that isn’t categorically being served by other vendors and try to feat that niche, we consider a Razer Phone won’t find poignant success in a marketplace.

My theory is that this chronicle of a phone will shortly be ignored and that a product difficulty will die off after another iteration or two.

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