The smartphone market is one of the most fiercely competitive markets for brands. The survival environment in the smartphone market is extremely difficult, and only a handful of companies can survive the fierce competition. Companies like Apple and Samsung have formed a duopoly in the market, and there are many other companies dreaming of joining the big leagues. Now, a new report reveals just how bleak the market has become since 2017.
According to statistics from Counterpoint Research, there will be only 250 active smartphone brands in 2023. This may seem like a huge number, but when you look at the fact that there were over 700 smartphone brands in 2017, it starts to look shocking how the market has shrunk in just 6 years. The company also added that the decline was almost entirely faced by local brands, with more than global brands remaining above 30.
The survey mentioned that some smartphone brands have been eliminated in India, the Middle East, Africa, China, Japan and South Korea.
Among the list of smartphone brands that have withdrawn from the market, LG and Kyocera are only available in the local market. Small companies have actually suffered greater losses than large companies, but they are still able to survive this storm.
Counterpoint Research even mentioned a series of challenges faced by smartphone brands that led to their premature closure. For example, users are maturing, replacement cycles are lengthening, and the refurbishment market is growing. Add to that supply chain issues, economic recession, technological changes and the ability of large manufacturers to mass-produce phones.
The sad point here is that the company has mentioned that more smartphone brands will experience this reduction, but small manufacturers can survive by selling devices at a premium, but even then they have to offer something unique, something that other companies are not offering. Take Fairphone as an example. Even though the brand isn't huge, it still offers many selling points that big brands can't even think of right now.
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