Smartphones Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Smartphones Market is segmented by Operating System (Android, iOS, and Windows), Distribution Channel (OEM, Retailer, and E-commerce), Price Range (Premium Phones (USD 400 and above), Mid-range Phones, and Budget Phones), and Geography.

Market Snapshot

cagr
Study Period:

2018 - 2026

Base Year:

2020

Fastest Growing Market:

Asia Pacific

Largest Market:

Asia Pacific

CAGR:

11.2 %

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Market Overview

The smartphone market was valued at USD 714.96 billion in 2020, and it is expected to reach USD 1351.8 billion by 2026, at a CAGR of 11.2% over the forecast period 2021 - 2026. Increased consumer spending across regions has driven the sales of smartphone markers for years. The growth of the market is, however, plateauing, considering intense penetration levels. For instance, 91% of US households own smartphones and are packed with vital features at different price points.

  • With around 50% of smartphone penetration, on average, across regions, the replacement cycle is lengthening, which prompts the decline of unit sales, especially in regions such as the US and China.
  • While companies have been increasing their revenues by launching new variant phones with increased frequency, the maturity state in a few regions might be challenging for their revenues. For instance, in April 2020, Apple launched the iPhone SE. The launch added a new iPhone model into Apple’s product mix just as lockdown restrictions had reached important markets, such as the US.
  • However, 5G handsets and foldable phones are likely to provide them with new opportunities. According to Ericsson, the number of mobile 5G subscriptions in North America will reach 325 million compared to 3 million in 2019.
  • Component suppliers are ramping up their production to support the efforts of smartphone makers. For instance, at the IFA electronics show in Berlin, Qualcomm reported that its partners are developing over 150 designs using its 5G processors. This means the company is expanding 5G across its product line to make 5G accessible to over 2 billion smartphone users. This way, the company expects to extend 5G to cheaper smartphones.
  • However, due to the outbreak of COVID-19, smartphone shipments saw a declining stage, as countries are still dealing with the pandemic. According to a report, there is a 15.7% decline year-on-year in unit shipments from 331.8 million in Q2/2019 to 279.7 million in Q2/2020.

Scope of the Report

Smartphones, with strong hardware capabilities, extensive mobile operating systems, wider software applications, internet, and multimedia functionality (music, videos, and gaming), alongside core phone functions such as voice calls and text messaging, are considered in the scope. Smartphones used for industrial purposes, or otherwise known as rugged phones, are not considered in the scope.

By Operating Segment
Android
iOS
Windows
Other Operating Segments (Blackberry, Sailfish, and Tizen)
By Distribution Channel
OEM
Retailer
E-commerce
By Price Range
Premium Segment (USD 400 and Above)
Mid-range Phones
Budget Phones
By Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Argentina
Rest of Latin America
Middle-East and Africa
UAE
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Online Sales of Smartphones may be Challenged by Offline Push

  • The smartphone is becoming an important part of retail sales, as they are an ever-increasing part of consumers’ lives. E-commerce portals like Amazon, among others, attract end users with special discounts on smartphones and created an online buying culture. The online sale of smartphones has been further led by the holiday shopping culture across regions.
  • However, in regions such as India, where the smartphone sales do not seem to slow down, the smartphone companies including Xiaomi, Samsung, Vivo, and Oppo are aggressively expanding their offline stores into the Indian smartphone market to leverage the market opportunity.
  • Further, the share might be lost to other categories such as fashion and fast-moving consumer goods (FMCG) and home products, among others, in regions with high smartphone penetrations. This is considering the increasing share of e-commerce and changing consumer attitudes toward online purchases.
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Asia-Pacific to Hold a Significant Market Share

  • Asia leads the smartphone market both in terms of production and sales as well. The region houses a significant number of smartphone makers such as Huawei Technologies Co. Ltd, Samsung Electronics, Vivo Communication Technology Co. Ltd, and Xiaomi Corporation, which together hold the lion’s share in the overall smartphone market.
  • China has been the go-to-market for any technology company. The primary vendor Huawei Technologies Co. Ltd shipped 55.8 million units in Q2/2020 and surpassed Samsung, which shipped 54.3 million units in Q2/2020. Despite facing sanctions from the US government that are now entering their second year, Huawei has been able to mitigate impacts on its international business enough to compete with Samsung and finally claim the global top spot.
  • However, tensions between the Indian and Chinese governments have impacted India's smartphone market, even though many Chinese OEMs have invested significantly over the last 18 months to increase their production and customer service operations in the country. For OEMs like Realme, Vivo, and Xiaomi, which focus on this market, the pandemic and governmental issues contributed to a problematic Q2/2020.
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Competitive Landscape

The smartphone market is a rather competitive market dominated by established players such as Samsung, Huawei, Apple, and Xiaomi, among others. Most of these players keep launching new models with small technology changes such as battery power, camera configuration, and/processor. Some of the recent developments in the market are:

  • In August 2020 - Xiaomi's launched Redmi 9 Prime. The phone comes with a 6.53-inch touchscreen display with a resolution of 1080 pixels by 2340 pixels at a PPI of 394 pixels per inch.
  • In July 2020 - Samsung Electronics introduced the Galaxy Z Flip 5G. The Galaxy Z Flip 5G is the first device in Samsung’s Galaxy line-up to feature the Qualcomm® Snapdragon™ 865 Plus 5G Mobile Platform. This new platform maximizes the power of 5G with revved-up performance to deliver faster and more efficient on-device processing with sharper imagery through improved graphics rendering.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Supply Chain Analysis

    5. 4.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Operating Segment

      1. 5.1.1 Android

      2. 5.1.2 iOS

      3. 5.1.3 Windows

      4. 5.1.4 Other Operating Segments (Blackberry, Sailfish, and Tizen)

    2. 5.2 By Distribution Channel

      1. 5.2.1 OEM

      2. 5.2.2 Retailer

      3. 5.2.3 E-commerce

    3. 5.3 By Price Range

      1. 5.3.1 Premium Segment (USD 400 and Above)

      2. 5.3.2 Mid-range Phones

      3. 5.3.3 Budget Phones

    4. 5.4 By Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 France

        4. 5.4.2.4 Spain

        5. 5.4.2.5 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 South Korea

        5. 5.4.3.5 Rest of Asia-Pacific

      4. 5.4.4 Latin America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of Latin America

      5. 5.4.5 Middle-East and Africa

        1. 5.4.5.1 UAE

        2. 5.4.5.2 Saudi Arabia

        3. 5.4.5.3 South Africa

        4. 5.4.5.4 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Samsung Electronics

      2. 6.1.2 Huawei Technologies Co. Ltd

      3. 6.1.3 Apple Inc.

      4. 6.1.4 Vivo Communication Technology Co. Ltd

      5. 6.1.5 Xiaomi Corporation

      6. 6.1.6 Guangdong OPPO Mobile Telecommunications Corp. Ltd

      7. 6.1.7 Nokia Corporation

      8. 6.1.8 AsusTek Computer Inc.

      9. 6.1.9 Sony Corporation

      10. 6.1.10 Micromax Informatics Ltd

      11. 6.1.11 Motorola Inc.

      12. 6.1.12 HTC Corporation

      13. 6.1.13 Lenovo Group Limited

    2. *List Not Exhaustive
    3. 6.2 Revenue of Major Vendors

  7. 7. GLOBAL SHIPMENTS

    1. 7.1 Shipments of Top Selling Mobile

    2. 7.2 Shipments by Geography

      1. 7.2.1 United States

      2. 7.2.2 Europe

      3. 7.2.3 China

      4. 7.2.4 India

      5. 7.2.5 Japan

      6. 7.2.6 Western Europe

  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Smartphones Market market is studied from 2018 - 2026.

The Smartphones Market is growing at a CAGR of 11.2% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

  • Samsung Electronics
  • Apple Inc.
  • Huawei Technologies Co., Ltd.
  • Xiaomi Corporation
  • Vivo Communication Technology Co. Ltd

Are the major companies operating in Smartphones Market.

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