--- title: "What caused 450 companies to depart the global smartphone market, from 700+ in 2017 to 250 in 2023." description: "What caused 450 companies to depart the global smartphone market, from 700+ in 2017 to 250 in 2023?" author: "Saumya Mishra" published: 2023-09-24 updated: 2023-09-25 canonical: https://www.mindstick.com/news/3348/what-caused-450-companies-to-depart-the-global-smartphone-market-from-700-in-2017-to-250-in-2023 category: "technology" tags: ["smartphones", "finance", "company"] reading_time: 2 minutes --- # What caused 450 companies to depart the global smartphone market, from 700+ in 2017 to 250 in 2023. The global [smartphone market](https://yourviews.mindstick.com/view/84784/how-samsung-leads-indian-smartphone-market-with-highest-sales) has experienced significant growth, with a peak of 700+ brands in 2017. However, the number of active brands has fallen by two-thirds to almost 250 in 2023, according to Counterpoint. The market is now tracking sales of these brands across over 70 key countries, indicating a shift in the industry's dynamics. The decline of smartphone brands is attributed to factors such as the rise of Chinese brands, lack of R&D spending, a maturing user base, improved device quality, longer replacement cycles, economic headwinds, supply-chain bottlenecks, and [major technological](https://answers.mindstick.com/qa/115360/what-major-technological-breakthroughs-have-been-announced-in-the-past-week-globally) transitions like 4G to 5G. The key drivers for this market [consolidation](https://www.mindstick.com/blog/11733/debt-management-for-startups-consolidation-loan-vs-balance-transfer) trend include a maturing user base, better R&D innovations, competition from larger brands, and tough macroeconomic conditions. ## The demise of “local kings” The number of active smartphone brands has largely decreased to local brands, with most operating in lower price bands exiting the market. These brands, once [known as](https://answers.mindstick.com/qa/35703/ricky-ponting-is-also-known-as-what) "local kings," have been fragmented across regions like Asia-Pacific, [Latin America](https://answers.mindstick.com/qa/51303/how-did-the-us-respond-to-communist-revolutions-in-latin-america), and [Middle East](https://answers.mindstick.com/qa/113774/how-might-current-geopolitical-tensions-in-the-middle-east-affect-global-energy-markets-this-year) & Africa. Local brands like Micromax and Symphony have lost significant share over the last [five years](https://answers.mindstick.com/qa/39990/which-is-the-highest-body-that-approves-five-years-plans-in-the-country). Small brands have declined due to their inability to keep up with the rapidly evolving smartphone industry. They have been largely dependent on white-label devices and capitalized on the market's transition from 2G to 3G/4G, benefiting from strong entry-tier demand in Africa, Asia, and Latin America. However, [as the market](https://answers.mindstick.com/qa/38206/name-the-online-fashion-portal-which-was-acquired-by-flipkart-ltd-on-26-july-2016-through-its-unit-myntra-in-a-move-to-maintain-its-position-as-the-market-leader) matures, there is now greater demand for better specifications, design, [brand value](https://yourviews.mindstick.com/story/4510/top-5-indian-cricketers-with-the-highest-brand-value), and ecosystem integration. ## Tough competition from emerging Tier-1 Chinese brands The rise of Chinese brands like Xiaomi, Oppo, and Vivo has accelerated the decline of small brands, as they offer better smartphones at aggressive prices. The Covid-19 pandemic further accelerated this decline, with component shortages [affecting global](https://answers.mindstick.com/qa/113846/how-are-sustainability-trends-shaping-the-future-of-industries-and-affecting-global-markets) smartphone brands. Big brands have been able to increase profit margins, while small brands struggled to maintain operations. --- Original Source: https://www.mindstick.com/news/3348/what-caused-450-companies-to-depart-the-global-smartphone-market-from-700-in-2017-to-250-in-2023 Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.