The market downturn couldn’t have come at a worse time for Apple. It was already facing major supply chain chaos in Q2. And now it has to face a major decline in the smartphone market itself. Inevitably this will lead to a brutal battle for market share as companies struggle to survive.
Chemicals and the Economy
The trend is your friend in the smartphone market
Two core trends are playing out in the smartphone market, now it has gone ex-growth. The weaker players are suffering major hits to their revenue and profits. And the most successful company, Apple, is busy accelerating its move into the more service-based markets of the future.
Smartphone sales decline highlights need to move to a more service-based business model
Global smartphone sales took a hit in Q3, disappointing those who had hoped the economy might be moving into full recovery mode. And the market continues to see a major shift in consumer preferences: Back in 2013, sales were in turbo-charged growth mode, with volume rising 41% by year-end. And 2014 saw volume up 31%, […]
Samsung stumbles in global smartphone market as Xiaomi overtakes Apple
Smartphone sales confirm that global markets are continuing to pivot to the New Normal world. Back in 2014, Samsung dominated with its middle market positioning. But since then, its position has been squeezed as the market polarises between low-cost Chinese suppliers and Apple’s focus on adding services. Every third smartphone used to be a Samsung. […]
“One size no longer fits all” as the global smartphone market breaks down into different segments
The pandemic was very good news for some companies, with demand for online activities rocketing. But whilst many parts of the developing world are still suffering, most developed countries are now starting to reopen as vaccinations spread. Western companies are now struggling for chip supplies, due to their lack of local investment. The Chinese market […]
Smartphone sales highlight new trends in consumer markets
Smartphone markets continue to provide early warning of the major changes taking place in consumer markets. And Q4 data confirms the old rules are becoming less and less relevant: As the chart shows, market positioning is now all-important. Apple are stretching their lead in the ‘sweet spot’ of the value chain – design – and […]
Smartphone sales confirm mid-market of ‘affordable luxury’ is disappearing
Another 3 months, another decline in global smartphone sales. And more pressure on mid-market players like Samsung, as China’s low-cost producers continue to gain market share. As the chart shows: Samsung had 35% of the global market back in 2013, but was down to 23% in Q3 Its annualised volume fell to 262 million from […]
Smartphone sales head into decline as affordability becomes key
The smartphone sales decline accelerated in Q1, as Strategy Analytics report: “Global smartphone shipments fell 17% to reach 275m in Q1. This is the smartphone industry’s worst quarterly performance of all time. On an annualised basis, as the chart shows, global volume was down 12% to 1.36bn from the Q3 2017 peak. And, of course, […]
Chain’s smartphone and auto sales tumble as coronavirus hits demand
China is the world’s largest market for smartphones and autos – responsible for c30% of global sales for both. Yet as Reuters notes: “Most western policymakers and journalists view the world economy through a framework that is 10-15 years out of date, failing to account fully for the enormous shift in activity towards China and […]
The next billion phone users will be buying $10 smart feature phones, not $1000 iPhones
Smartphone sales plateaued in Q3, down 9% since Q3 2017’s peak of 1.55bn, as the chart shows. But the bigger threat from smart feature phones – now retailing for as little as $11 – continues to grow as Reliance and Vodacom launch new models in India and Africa. Smartphone sales are also seeing important shifts […]
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