Tech giants like Apple and Samsung are swallowing local manufacturers!

The global smartphone market is a testament to the fierce competition among brands. While most people primarily recognize and acknowledge the battles between prominent tech behemoths such as Samsung, Apple, and Xiaomi, the reality is much more intricate. A revealing study by Counterpoint highlights the sheer intensity of this competition. The data showed that from 2017 to 2023, approximately 500 brands withdrew from the smartphone market.

When people think about global smartphone competition, most can name around 10-20 brands, primarily the major ones. Yet, the actual competition is far more intense than it seems. Presently, about 250 manufacturers globally are striving to carve out their niche in the market. Back in 2017, this number was over 700. Within a short span of six years, a staggering 65% of these brands have vacated the marketplace.

Tech giants like Apple and Samsung are swallowing local manufacturers!

There are multiple reasons behind this massive exodus. One significant factor was the growing allure of smartphones. The increasing demand and profitability of the sector enticed various companies, both local and global, to venture into this domain. Many local brands, while initially successful in their regions, couldn't sustain their momentum in the face of overwhelming competition.

The evolution of the market hasn't favored local manufacturers. Leading global brands have expanded their footprints, offering superior-quality phones at competitive prices, making it increasingly challenging for local players to keep pace. Furthermore, these global tech giants have leveraged their vast resources to market their products aggressively, often using celebrities as brand ambassadors, putting smaller local brands at an even more considerable disadvantage.

Another significant barrier for many companies was the onset of the Covid-19 pandemic. While there was a surge in the global demand for technological products, many manufacturers grappled with disruptions in the supply chain and economic challenges. This turbulence further marginalized smaller manufacturers. Consequently, the number of brands producing smartphones has seen a precipitous decline since 2017. It's imperative to ensure that this decline doesn't jeopardize the interests of consumers and that competition remains healthy.

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