The U.S. Consumer Smartphone Market is dominated by Apple and Samsung. Apple has a significant share of the global market, and they dominate the developed markets with high-end iOS-based smartphones. Samsung and HTC follow suit with high-end Android-based smartphones. In addition to these large players, several smaller companies are also making a dent in the market. Read on to learn about the major trends that will shape the market over the next five years.
Report on the U.S. Consumer Smartphone Market
IBIS World’s latest report on the US consumer smartphone market examines 5 companies. This report uses IBIS Benchmarking Pro to evaluate companies against industry segments, close competitors, and other indicators. You can also analyze financial strength, competitive positioning, and threats and opportunities. In short, you will be armed with the most important information available in this market. You can start your research by downloading this report now.
In Q3 2020, Apple and Samsung held 40 percent and 14%, respectively, of the US market, respectively. However, Apple continued to dominate the market, despite the fact that volume mix was shifting to older models. In fact, the US market sold approximately 10% fewer smartphones in the fourth quarter of 2018 than it did in the same quarter last year. Early adopters purchased iPhone XS Max and XS in September and October, while new device sales were down by 10% in November and December. Apple’s biggest channels, such as Verizon and Alcatel, increased their share, while Motorola grew from a low base.
In addition to the sales growth in the United States, the report identifies the major regions for the global smartphone market. In North America, a significant portion of the smartphone market is concentrated in China, where more than $130 billion in sales are generated annually. The United States, on the other hand, holds the second largest segment, contributing $55.6 billion in annual sales. In total, there are 1.5 billion smartphones sold globally each year.
Forecasts for the next five years
The smartphone industry will experience a tough year with higher inflation, limited economic growth, and a looming conflict in Eastern Ukraine. Despite these challenges, global mobile phone shipments are on track to surpass their pre-pandemic levels by 2025. The rapid growth of emerging economies like India and Eastern Europe are driving shipments and are likely to continue to increase through 2025. In developing markets, consumers will delay purchasing their first smartphones for now, but the next five years will see a wave of further smartphone adoption.
APAC will account for 54% of the global smartphone market, and China and India will be the leading regions. Growth in APAC will be higher than in other regions due to significant urbanization and rising disposable incomes. In addition, consumers in the region will be more apt to use smartphones if they can get them at an affordable price. A detailed market research report will help you formulate an effective business plan.
International Data Corporation has revised its forecast for 2022, saying that global shipments of smartphones will fall by 3.5 percent from this year to 1.2 billion units in 2022. While the downward projection is a short-term setback, IDC expects the market to rebound and grow at a 1.9% compound annual growth rate through 2026. This growth is still a substantial increase over the five-year period.
Trends in the market
The demand for smartphones is predicted to increase with the rise of global GDP per capita income during the forecast period. Consumer preferences towards social responsibility, environment, and fair trade are also increasing. Smartphone shipments are expected to grow at a 7.7% CAGR during the forecast period. These trends are expected to lead to a booming smartphone industry. While demand for smartphones is relatively stable, some trends may indicate a slowdown. This article discusses these trends and their implications.
The entry-level smartphone market is expected to grow rapidly in developing countries. Smartphones have penetrated rural areas, and local governments are pushing for the digital economy. For instance, in India, the government is pushing its flagship program, the Digital India program, to convert the country into a digitally empowered society. However, these trends are tempered by the fact that smartphone use is still a minority in developed countries. In the near future, this will likely change.
With the development of 5G technology, the demand for smartphones is expected to rise. This will drive down prices for existing 4G smartphones and increase sales volume. The smartphone market is increasingly becoming mobile, with more than a third of consumers checking their phone within five minutes of waking up. Twenty percent of smartphone users check their phone more than fifty times a day. As more features become available, the consumer smartphone market is expected to grow exponentially.