Nearly 500 phone brands have left the market considering the fact that 2017

How many cellphone brands do you suspect have left the market due to the fact that 2017? The likes of LG possibly come to mind, then there are the numerous neighborhood, lesser-known brands. Maybe fifty, or 100? The actual figure is, astoundingly, almost 500.

Counterpoint Research's evaluation shows that at its top in 2017, there were more than seven hundred smartphone manufacturers contributing to the 1.5 billion gadgets sold annually. In 2023, that quantity is down by way of a third to almost 250.

Nearly all of those manufacturers that have shuttered during the last five years have been nearby ones observed in locations inclusive of India, the Middle East, Africa, China, Japan, and South Korea. The wide variety of world manufacturers along with Samsung has remained constant at over 30.

Counterpoint Research highlights numerous motives behind the shrinking quantity of brands over the past seven years. The pandemic and thing shortages that began in 2020 had a huge effect, while the worldwide financial slowdown following Russia's invasion of Ukraine in 2022 has caused many smaller cellphone corporations to shutter.

The neighborhood brands have additionally been handling different factors killing off their corporations. More people are holding onto their devices for longer before upgrading, cheaper telephones are improving in quality all the time, there's a maturing user base, we have seen era transitions along with that from 4G to 5G, and a handful of huge brands are holding on to greater of the marketplace.

Another location having an impact is refurbished phones. Refurbed telephone sales grew 14% in 2021 as compared to 5% for brand spanking new telephone income. The difference became even extra pronounced in 2022: 5% increase for refurbs and -12% negative increase for brand spanking new handsets.

One of the biggest casualties in the telephone marketplace these days has been LG. After six years of losing money, totaling nearly $4.Five billion, the writing turned into at the wall for the enterprise's cellphone division in 2021. It cease the industry two years in the past, taking with it a number of the most modern, if not continually successful, handsets of recent instances.

Counterpoint expects extra smartphone manufacturers to dissolve as time is going on, setting more strength into the arms of the tech giants. However, smaller brands can be able to live to tell the tale by means of offering some thing precise, consisting of Doro, which objectives older customers, and Fairphone, which focuses on ethical sourcing and easy repairs.