SMARTPHONE MARKET ANALYSIS

The short life cycles of smartphones have been significantly restraining the growth of the global smartphone market in recent years. With new flagship models being released annually, consumers are not holding onto their existing phones for long. Manufacturers are constantly pushing new features and specifications to entice upgrades even when the existing devices are still functioning well. This has reduced the average ownership period of smartphones globally. When users replace their phones frequently, it fails to contribute towards the overall sales volume of the market.

Moreover, the shorter usage cycles have also impacted the resale and used smartphone market negatively. With the latest models available at attractive price points, the second-hand demand for phones even 1-2 years old is declining steadily. This further pulls down the potential recurring revenue stream for OEMs. It is reducing the overall consumer spend going back into the smartphone ecosystem over time. The faster pace of new launches has also increased the build-up of e-waste from discarded devices.

Market Opportunities: Emergence of 5G technology

The emergence of 5G technology has the potential to significantly accelerate the growth of the global smartphone market in the coming years. 5G brings transformative technological advancements like ultra-fast speeds, low latency network connectivity and support for a massive number of connected devices. This step-change in mobile broadband will facilitate the widespread adoption of advanced applications that require high-speed data transmission and real-time functionality.

5G enables revolutionary new smartphone experiences based on technologies like augmented and virtual reality, artificial intelligence, cloud computing and Internet of Things. The combination of high bandwidth and low lag offered by 5G networks allows for immersive multimedia experiences on mobile handsets. 5G also supports innovative applications in areas such as autonomous driving, remote healthcare, smart cities and industrial IoT which will spur new use cases and use models for smartphones. The ability to effortlessly transfer large files using 5G will bolster the growth of mobile cloud services.