Weak Branding in Cell Phones

Brands can be powerful assets. Just think of Disney movies, for example. If you're going to take the kids to a movie, odds are, you'll give more consideration to a new Disney feature than features put out by unfamiliar names. If you're in the market for a new car, you'll likely have some strong and positive thoughts about Honda vehicles, but may have trouble seriously considering, say, a Pacco VBX 5000.

When it comes to cell phones, you probably think of cell-phone makers such as Nokia (NYSE: NOKNews), Motorola (NYSE: MOTNews), Samsung, and Sony-Ericsson, a joint venture betweenSony (NYSE: SNENews) andEricsson (Nasdaq: ERICNews). You might think that they've built great brand loyalty among their customers by now. You'd be wrong, though — at least according to a recent survey by Harris Interactive. The future will likely be rife with cell-phone service providers offering their own brands of cell phones, so the folks at Harris asked people how likely they'd be to buy various cell phones:

  • More likely to buy from a handset manufacturer: 19%
  • More likely to buy from a wireless service provider: 27%
  • Just as likely to buy from either: 54%

This suggests that cell-phone makers might want to focus more intently on strengthening and differentiating their brands, lest consumers start to consider cell phones mere commodities. Intel (Nasdaq: INTCNews) is famous for having made a strong name for itself via its "Intel Inside" campaign. Without it, most of us would likely have thought little about which company's chips reside in our computers.

Intel is a Motley Fool Inside Value recommendation, while Disney is a Motley Fool Stock Advisor pick.

Longtime Fool contributor Selena Maranjian does not own shares of any companies mentioned in this article. The Motley Fool has a full disclosure policy.

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Mr. DAPs

Mr. DAPs

Hi, I'm Mr. DAPs, the Founder, and Editor in Chief of DAPS MAGIC! I can be regularly found at Disneyland with my hat and bow tie taking pictures and simply enjoying the Happiest Place on Earth. I'm also the weekly host of GEEKS CORNER and your Disney reporter for DISNEY REPORTER on DAPS MAGIC's YouTube channel. I am also now honored to announced that I'm a Brand Ambassador with Her Universe! Find me on Twitter and Instagram. as I'd love to connect with you. Make sure and say hi!






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