Smartphone Market (Updated Version Available)

Smartphone market is estimated to reach over 763.06 USD Billion by 2030 from a value of 456.60 USD Billion in 2022, growing at a CAGR of 6.89% from 2022 to 2030.

A smartphone is a mobile electronic device with advanced functionality that connect to the internet and a cellular network.  Smartphones are equipped with a wide range of features that make them versatile and powerful devices. Smartphones facilitate easy communication, online banking, navigation, and entertainment. Smartphones have more advanced features, operating systems, and virtual keyboards in comparison to cell phones.

The growing trend of using smartphones for personal and professional activities, such as shopping and social media, is driving the market growth. Social media has become more accessible and convenient with the use of smartphones. Furthermore, regular upgrades to hardware components, such as processors, displays, and cameras drive demand for new smartphones. For instance, Apple is known for its distinctive hardware design, including the iPhone's minimalist look and intuitive user interface. Apple consistently incorporates latest technologies into its smartphones, including high-resolution displays, powerful processors and high-quality cameras. Introduction of new technologies and features, such as facial ID and Touch ID is fascinating to people of all age groups further increasing the demand for smartphones across the globe. Moreover, Xiaomi is also making budget smartphones more powerful by integrating high-end features, such as fast processors and high-resolution cameras, into affordable devices.

Smartphone Report Coverage:

Market Dynamics:

Driver

A shift in consumer lifestyle is making consumers rely on their smartphones for communication, entertainment, and other activities. The availability and use of mobile internet services such as social media, online shopping, and streaming, have led to an increasing demand for smartphones across the world. As consumer demands for high-performance devices, smartphone manufacturers are focused on providing devices with better hardware and software features. Continuous development of new technologies, such as 5G connectivity and foldable displays drives innovation and competition in the market thereby propelling the growth of the market.

Restraint

Poor signal and lack of efficient network connectivity obstructs the adoption of smartphones especially in rural areas. Additionally, smartphones are more prone to theft leading to data insecurity. For instance, installation of third-party applications has led to the rise in numbers of data theft and misuse of personal information, which tends to be a restraining factor for the growth of the market.

Opportunities

The integration of internet of things (IoT), and machine learning technologies in smartphones will drive innovation and create new opportunities in the market. IoT will thus allow to operate multiple devices through a single application merged with smartphone connectivity. The market is anticipated to propel in the forecast period as consumers demand devices with better graphics and performance. Moreover, consumers demand devices that controls and interact with smart home devices further providing lucrative opportunities for the growth of the global market.

Smartphone Market Segmentation:

By Operating System

Based on the operating system, the market is segmented into android, iOS, and others. Google's Android operating system is the most widely used operating system in the market, accounting for over 80% of the market share. Google has established partnerships with major manufacturers such as Samsung, Huawei, and Xiaomi, which has helped drive the adoption of android devices. On the other hand, iOS runs on Apple devices, which means that users are limited to a narrow range of options when it comes to hardware. However, Apple's iPhone devices are known for their premium design and build quality appealing a large number of consumers who are looking for a quality and visually appealing device thus driving the demand for iOS products.

By Display Technology

Based on the display technology, the market is segmented into liquid-crystal display (LCD), organic light-emitting diode (OLED), and others. OLED displays hold the largest share in the smartphone display technology market. The adoption of OLED displays has been driven by their thin and flexible form factor and improved color accuracy compared to LCDs. On an OLED display, each pixels gets its own illumination without a backlight whereas pixels are illuminated by a backlight on an LCD. LCDs are commonly used in budget and mid-range smartphones due to their low cost and good color accuracy, but they do not offer the same level of contrast and color accuracy in comparison to OLED displays.

By Price Range

Based on the price range, the market is segmented into low, medium, and high-range smartphones. Low-range smartphones are aimed at price-sensitive consumers who are looking for a basic device with limited features whereas mid-range smartphones offer a good balance of features and affordability. Mid-range devices are popular among consumers who are looking for a more capable device than a budget smartphone but without the premium price tag of a high-end device. On the other hand, high-end smartphones are aimed at consumers who are looking for the best performance, features, and design. High-end devices are often positioned as premium devices and are made by premium brands such as Apple and Samsung.

By Sales Channel

Based on the sales channel, the market is segmented into physical retail stores, E-commerce, and OEMs. Physical retail stores, such as electronics retailers and specialty stores, offer consumers the ability to touch and test devices before purchasing providing consumers a better experience than the online stores. Furthermore, the E-commerce smartphone market has been growing rapidly in recent years as consumers increasingly turn to online channels for their smartphone purchases. The convenience, wide selection, and competitive prices offered by online retailers have made E-commerce a popular choice for consumers. Moreover, there are certain original equipment manufacturers (OEMs) that also have a significant market share. For instance, Oppo is a Chinese smartphone manufacturer that has been growing in popularity, offering devices with high-end features and stylish designs.

By Region

The Asia-Pacific region, including countries such as China, India, and South Korea, is the largest smartphone market in the world.   China is the largest producer of smartphones globally, with a significant number of major smartphone manufacturers located in the country such as Huawei, Xiaomi, Oppo, and Vivo. Manufacturers are offering devices at competitive prices to meet the needs of price-sensitive consumers.

North America, including the United States and Canada, is a mature smartphone market, with high penetration of devices and a strong consumer base. Investments in distribution networks, partnerships with local companies, and expansion into new markets in driving the growth of the regional market. For instance, in 2021, Apple announced to make contributions of more than USD 430 billion in the United States.

Smartphone Market Competitive Landscape:

The smartphone market is a highly competitive industry, dominated by a large number of market players. These companies regularly release new models with advanced features, driving innovation and competition in the market. Stakeholders have the opportunity to evaluate parameters such as SWOT analysis, merger acquisitions, and business strategies. Some of the key players in the market include:

• Samsung Electronics Co. Ltd
• Apple Inc.
• Google LLC
• Xiaomi Corporation
• Lenovo Group Limited
• OnePlus Technology Co. Ltd
• Microsoft Corporation
• Nokia Corporation
• Huawei Technologies Co. Ltd
• Guangdong OPPO Mobile Telecommunications
• Vivo Communication Technology
• HTC Corporation
• Sony Corporation

Recent Developments

• In 2021, Apple launched its latest iPhone 13 series, which includes several models with improved features and specifications, including faster processors, improved cameras, and updated designs.
   
• In 2021, Samsung launched Samsung Galaxy S21, an android smartphone. It features a 6.2-inch Dynamic AMOLED display, Exynos 2100 or Snapdragon 888 chipset, up to 12GB of RAM, and a triple rear camera system.