The smartphone market holds great excitement for everyone, but it appears that the enthusiasm of both tech fans and the general user base disappears. According to research made by TrendForce, following a 20% decline in the first quarter, the second quarter witnessed an additional 6.6% decrease in phone manufacturing. Brands now need to offer more premium devices at a more affordable price to gain more sell rates again. Additionally, TrendForce’s new report reveals a new brand joining the top 5 seller list and that is, Transsion.
In the first half of 2023, smartphone production reached a total of 520 million units, experiencing a 13.3% decrease compared to the same period in the previous year. The number of phones produced in the first half of 2023 reached the lowest level in the past 10 years. There has been a downward trend in the smartphone market for a long time, but instead of slowing down, this decline is continuing.
While economic challenges are naturally seen as a contributing factor, we believe that phones are no longer as innovative as they once were. Previously, phones boasted compact and sleek designs, but now such models are nearly extinct, including those from tech giants like Samsung and Apple. Modern iPhones come with a much bulkier design compared to old iPhones. Furthermore, newly introduced devices tend to be enhanced iterations of previously sold models, rather than introducing groundbreaking features. Users don’t feel the need to upgrade to the next model.
Samsung and Apple manufacture nearly equal amount of phones annually. If the demand for the iPhone 15 series surpasses expectations, Apple could easily surpass Samsung. Samsung currently maintains its dominant position in the global market, which it has held for a very long time.
What do you think is behind the decline in smartphone manufacturing? Would you consider purchasing an upgraded model from the same series as your current phone? If so, what are the reasons, please don’t forget to mention your opinions in the comments.