Market Overview:
Smartphones have become an essential part of our daily lives. They provide easy access to information through apps and internet, entertainment through multimedia and connectivity through calling and messaging features. Advances in technology have enabled enhanced features like high resolution cameras, large screens, powerful processors and long battery life in smartphones.
The smartphone market is estimated to be valued at US$ 1.45 Bn in 2023 and is expected to exhibit a CAGR of 4.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving the growth of the smartphone market is the rise of 5G technology. 5G provides dramatically faster download speeds and reduced latency compared to existing 4G networks. It allows for new applications such as autonomous driving, telemedicine, augmented and virtual reality. Most of the major smartphone manufacturers have started introducing 5G enabled models. As the network coverage expands globally, it is expected to fuel adoption of 5G smartphones over the forecast period. Regions with established 4G infrastructure are expected to see faster transition to 5G technology.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the smartphone market is moderate. Large capital requirements and existing patents pose a barrier. However, falling costs of components have reduced entry barriers.
Bargaining power of buyers: The bargaining power of buyers in the smartphone market is high. The market is dominated by few global players providing similar specifications. Buyers can easily switch to other brands.
Bargaining power of suppliers: The bargaining power of suppliers of smartphone components like processors, memory and displays is moderate to high given the technical know-how and high switching costs for OEMs.
Threat of new substitutes: The threat of substitutes for smartphones is moderate. Technologies like tablets, laptops and wearables offer partial substitution.
Competitive rivalry: The competitive rivalry in the smartphone market is high due to a few global giants fiercely competing on pricing and innovation.
SWOT Analysis
Strength: leading brands like Samsung and Apple have established strong brand loyalty globally and continuously invest in R&D to launch innovative features.
Weakness: declining profit margins and higher costs due to price wars and shorter upgrade cycles. Overdependency on a few markets like China and emerging markets exposes to economic risks.
Opportunity: untapped growth potential in developing markets of Asia, Africa and Latin America. Emerging technologies like 5G, foldable displays and AI applications offer new revenue streams.
Threats: trade war induced rise in component costs. Tighter regulations around privacy and data security Pose compliance challenges. Slowdown in China which has been a major driver of growth in the recent past.
Key Takeaways
The global Smartphone Market Growth is expected to witness high growth, exhibiting CAGR of 4.1% over the forecast period, due to increasing demand for seamless connectivity and access to internet based apps and services. Regionally Asia Pacific dominated the global smartphone market in 2023, accounting for over 55% share. China continues to be the dominant country globally in terms of both production and consumption of smartphones.
Key players operating in the smartphone market are Samsung Electronics, Apple Inc., Huawei Technologies Co., Ltd., Xiaomi Corporation and Vivo Communication Technology Co. Ltd. Samsung Electronics led the global smartphone market in 2023 with a market share of over 20% driven by its vast product portfolio across various price segments and strong brand presence across Asia and Americas. Apple retained its number 2 spot globally majorly driven by its premium flagship iPhone series and a strong loyal customer base especially in developed regions like North America and Europe.
Regional analysis
Asia Pacific region is expected to continue dominating the global smartphone market over the forecast period exhibiting a CAGR of over 5% owing to high population, increasing disposable incomes and rising middle class in countries like India and Indonesia which are expected to drive higher sales. China which accounted for over 30% of the global sales in 2023
For more details on the report, Read- https://www.pressreleasebulletin.com/smartphone-market-trends-size-and-share-analysis/
