Back in 2017, more than 700 smartphone brands were still actively competing around the globe. Almost 500 of those brands have left the smartphone business since then.
Per data from the Global Handset Model Sales Tracker report by Counterpoint, the number of smartphone brands that are still reporting their sell-through volume numbers have dwindled by two-thirds since the smartphone market hit its peak in 2016-17. Only approximately 250 brands have remained active as of 2023.
The tech market research firm notes that the decrease mainly comes from local brands, citing Micromax and Symphony as examples of brands that used to dominate the Indian and Bangladeshi markets but now have negligible market share or have even exited the market altogether. In the Philippines, brands like MyPhone, Cherry Mobile, and Torque are no longer active in the smartphone business.
The struggles faced by local brands, especially in regions like Asia-Pacific, Latin America, and the Middle East & Africa, are attributed to the decline in active brands. These local brands, often catering to lower price segments, found it challenging to keep pace with the rapidly evolving smartphone industry. Unlike their global counterparts, smaller brands lacked substantial resources for extensive research and development, manufacturing capabilities, and massive marketing campaigns.
Counterpoint also cites the rise of Chinese brands, including Xiaomi, OPPO, realme, vivo, TECNO, and Infinix which have further expedited the decline of smaller competitors. These Chinese brands have managed to offer high-quality smartphones at competitive price points, delivering better value to consumers.
The COVID-19 pandemic also happened. Add component shortages and a global economic slowdown to the mix, and it created a perfect storm for many smaller smartphone brands. Meanwhile, large global brands were better equipped to navigate these industry headwinds.
Counterpoint foresees the number of local smartphone brands will continue to decrease. Come to think of it, when was the last time you’ve heard a newly announced smartphone from our own local brands here in the Philippines?
Source: Counterpoint