At the peak of its development in 2017, more than 700 brands competed fiercely in the global smartphone market. By 2023, the number of active smartphone manufacturers with confirmed sales will decrease by two-thirds to about 250, according to data from analyst firm Counterpoint, which tracks smartphone sales in more than 70 countries.

A growing user base, improvements in device quality, longer device replacement cycles, economic barriers, supply chain bottlenecks, and major technological transitions such as the move from 4G to 5G have gradually reduced the number of active brands. Many local smartphone manufacturers, such as Micromax in India and Symphony in Bangladesh, have lost significant share or even exited the market in the last five years.

While the decline in the number of smartphone manufacturers is mainly due to local brands, the number of global companies remains stable. Local brands continue to sell only niche low-cost devices in regions with fragmented markets such as Asia Pacific, Latin America, the Middle East and Africa.

In the rapidly growing smartphone industry, small companies cannot invest in research and development, production and capacity building. In addition, most smaller brands do not have the resources for large-scale world premieres and large-scale advertising and marketing events featuring sports and movie celebrities.

Local manufacturers were once able to benefit from the market transition from 2G to 3G/4G thanks to the rapid development of mobile communications and almost insane demand, especially in Africa, Asia and Latin America. But since then, the needs of the average mobile phone user have changed and the user base has grown, driving demand for better features and impressive designs. The popularity of the brand and the existence of its developed ecosystem have become the determining factor for consumers.

The rapid growth and market expansion of Chinese manufacturers such as Xiaomi, OPPO and Vivo have also brought the decline of small brands closer. Chinese companies have launched a wide range of high-quality smartphones at aggressive prices, offering buyers the best value for money.

The COVID-19 pandemic, component shortages and the ongoing global economic crisis have further exacerbated challenges in the smartphone market, primarily affecting relatively small local manufacturers; Large global brands, on the other hand, found it much easier to maintain profitability in such market conditions.

In the future, the number of smartphone manufacturers will continue to decrease as major global brands adapt better to all macroeconomic obstacles and technological transitions. Large-scale investments by major brands in research, development, logistics and marketing have become key factors in the market consolidation trend.