iPhones to Capture 40% of
Smartphone Market Value in 2022, Despite Android Device Proliferation
A new report from Juniper Research has
found that sales of iPhones will bring in over $200 billion in 2022; nearly 40%
of the total smartphone hardware market, despite representing less than 20% of
devices sold that year.
The new research, Smartphone Market: Device
Innovation, Regional Analysis & Market Share Forecasts 2021-2026,
notes that although smartphone purchase cycles are lengthening, Apple has
managed to consistently convince users to purchase higher-priced models through
curation of a strong hardware and software ecosystem, which other vendors have
only limited opportunities to do in the current market. As a result, Apple’s
average selling price will rise in the coming years, while Android devices will
decline, unless they can leverage new technologies like 5G or bring new design
features, such as foldable phones, into the market.
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Two-horse Race?
Differentiation Needs More than Features, as
Newer Vendors Gain Ground
Juniper Research believes that Android vendors will struggle to compete on a
features basis in future. The research shows how vendors that focus on a
particular segment and investing in premium features, such as high-end audio
and advances in camera technology, will not appeal widely enough to compete at
scale in the smartphone market.
‘Feature diversification alone is not enough for
lasting success in the crowded smartphone market,’ remarked
research co-author Nick Hunt. ‘Apple and Samsung have
succeeded in fostering brand loyalty, which smaller vendors have struggled
with, despite many introducing new capabilities. These players need to pair
strong features with strong branding to have sustained success.’
The research also notes that the decline in Huawei’s fortunes, thanks to the US
trade ban, will not restore older brands to prominence, but allow other Chinese
brands to expand. We expect BBK, the manufacturer of Oppo, Vivo, Realme, iQOO
and OnePlus smartphones, will have over 200 million smartphones shipped in
2022; making it the third largest player that year. In the meantime, Huawei’s
market share will decline to just over 9% in 2022, from 11% in 2019.
Source: Juniper Research media announcement
