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| Global Smartphone Market Size |
Smartphones have become an integral part of our daily lives in modern times.
They not only enable seamless communication through calling and messaging
features but also allow the users to access internet, click high quality photos
and videos, play games, stream online content and manage daily tasks through a
wide range of productivity and utility apps. The rising disposable income
levels along with high smartphone penetration rates have been boosting the
sales of advanced smartphones with features like high-resolution displays,
large storage capacity, faster processors and enhanced camera specifications.
The global
Smartphone Market is estimated to be valued at US$ 1.45 Billion in 2023 and is
expected to exhibit a CAGR of 5.8% over
the forecast period 2023 to 2030, as highlighted in a new report published by
Coherent Market Insights.
Market Opportunity:
5G Connectivity
The rollout of 5G technology is expected to open new growth avenues for
smartphone manufacturers. 5G networks promise ultra-high internet speeds along
with extremely low latency which will enhance user experience of applications
that require high-speed data transfer and real-time connectivity like online
gaming, AR/VR, autonomous driving etc. As telecom operators continue investing billions
in upgrading infrastructure, more smartphones are integrating 5G modems to take
advantage of the next generation wireless connectivity. This is projected to
boost global sales of 5G enabled smartphones over the forecast period.
Porter’s Analysis
Threat of new entrants: The smartphone market is dominated by some major
players like Apple and Samsung. New entrants will face high additional capital
requirements and technological barriers to enter and compete in this market.
Bargaining power of buyers: Buyers have high bargaining power in this market
due to availability of a wide range of brands and features in smartphones.
Buyers can easily switch to other brands based on price and specifications.
Bargaining power of suppliers: A few major component suppliers like Qualcomm
and Intel dominate the smartphone market. This gives them higher bargaining
power over OEMs for prices and technologies.
Threat of new substitutes: There exists potential threat from new digital
devices like smartwatches and tablets eating into the market share of
smartphones.
Competitive rivalry: The smartphone market is highly competitive with
continuous innovations and upgrading by major brands to gain market share.
SWOT Analysis
Strength: Smartphones offer high functionality, connectivity and portability.
Rapid technological advancements and innovations help brands strengthen their
product portfolio.
Weakness: High dependence on few suppliers makes the industry vulnerable to
price fluctuations. Intense competition erodes profit margins. Security and
privacy concerns may deter some customers.
Opportunity: Emerging markets offer huge untapped growth potential. Penetration
of 5G networks will boost sale of newer models. Expanding e-commerce is
enhancing smartphone adoption.
Threats: Slowdown in global economies can reduce discretionary spending on
devices. Trade barriers and geopolitical tensions impact supply chains of major
brands. Proliferation of low-cost alternatives from Chinese vendors increases
competition.
Key Takeaways
Global
Smartphone Market Size is expected to witness high growth. Asia Pacific
currently dominates the market due to large population bases and growing
middle-class in countries like China and India. Lower average selling prices
and flexible financing schemes are increasing smartphone ownership rates across
regional Tier 2 and Tier 3 cities.
North America is another major regional market driven by continuous technology
upgrades and high replacement rates. Brands are focusing on premium price
segments through innovative features and superior camera/display technologies.
Key players operating in the smartphone market are Apple, Samsung, Xiaomi,
Oppo, Vivo. Apple dominates the premium segment in Western markets while
Chinese brands have a larger presence in Asia and emerging markets. These
majors are investing heavily in R&D to accelerate 5G-powered product
launches and capture the opportinities arising from network upgrades globally
over the forecast period.
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