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In short: What number of smartphone manufacturers do you assume have left the market since 2017? The likes of LG in all probability come to thoughts, then there are the numerous native, lesser-known manufacturers. Possibly fifty, or 100? The precise determine is, astoundingly, practically 500.
Counterpoint Analysis’s analysis reveals that at its peak in 2017, there have been greater than 700 smartphone manufacturers contributing to the 1.5 billion items bought yearly. In 2023, that quantity is down by a 3rd to nearly 250.
Almost all of these manufacturers which have shuttered during the last 5 years have been native ones present in areas akin to India, the Center East, Africa, China, Japan, and South Korea. The variety of international manufacturers akin to Samsung has remained constant at over 30.
Counterpoint Analysis highlights a number of causes behind the shrinking variety of manufacturers during the last seven years. The pandemic and element shortages that started in 2020 had an enormous influence, whereas the worldwide financial slowdown following Russia’s invasion of Ukraine in 2022 has prompted many smaller smartphone firms to shutter.
The native manufacturers have additionally been coping with different elements killing off their companies. Extra individuals are holding onto their units for longer earlier than upgrading, cheaper telephones are bettering in high quality on a regular basis, there is a maturing consumer base, we have seen know-how transitions akin to that from 4G to 5G, and a handful of huge manufacturers are holding on to extra of the market.
One other space having an influence is refurbished telephones. Refurbed smartphone gross sales grew 14% in 2021 in comparison with 5% for brand new cellphone gross sales. The distinction was much more pronounced in 2022: 5% progress for refurbs and -12% detrimental progress for brand new handsets.
One of many greatest casualties within the smartphone market in current instances has been LG. After six years of dropping cash, totaling nearly $4.5 billion, the writing was on the wall for the corporate’s smartphone division in 2021. It give up the business two years in the past, taking with it among the most revolutionary, if not all the time profitable, handsets of current instances.
Counterpoint expects extra smartphone manufacturers to dissolve as time goes on, placing additional energy into the palms of the tech giants. Nevertheless, smaller manufacturers might be able to survive by providing one thing distinctive, akin to Doro, which targets older customers, and Fairphone, which focuses on moral sourcing and straightforward repairs.
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