Since 2017, 500 smartphone companies have left the market
In the past few years, several big Android smartphone companies like LG and BlackBerry have left the market. However, according to some recent pieces of information, besides these two companies, almost 500 brands have actually left the market during the span of the last seven years.
In accordance with the report shared by Counterpoint Research, in 2023, there were approximately 250 active smartphone brand names, down from over 700 in 2017. Counterpoint stated that local brands were “almost entirely” to blame for the downturn. It was also mentioned that there were consistently more than 30 global brands. It pointed to the shutdown of companies in Japan (Kyocera and NEC), China (Meizu, Meitu, Gionee, and Coolpad), Korea (LG), the Middle East and Africa (Injoo and Xtouch), and India (Micromax, Intex, Karbonn).
Why are smaller brands more severely impacted?
One thing to notice here is that some brands included in the list have a presence in the international market, like LG and Kyocera. However, some other brands, like Meizu and Meitu, were acquired by larger companies. Well, whatever the case may be, it is evident that small companies are on the verge of closure.
Reasons behind closures
According to Counterpoint Research, small smartphone brands face several challenges that eventually lead to their closures. Some of the reasons are economic hurdles, specifically after the pandemic, supply chain issues, the huge scale of big manufacturers, technological transmission, i.e., from 4G to 5G, lengthy replacement cycles, a growing redesigned market, and a maturing user base.
According to the report, the number of active brands can be reduced in the future; however, there is still hope for small companies. The report suggests that the companies associated with one particular category might survive the challenges by selling their products at a premium, like Fairphone, Sonim, and Doro.
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