08 Jun 2021
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iPhones to capture 40% of smartphone market value despite Android device proliferation

By Shannon Williams

Apple iPhones are set to capture almost forty percent of smartphone market value in 2022, despite the proliferation of Android devices across the globe, according to a new report.

New research from technology-focused analyst firm Juniper Research has found sales of iPhones will bring in more than $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 Market Research, 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, the report says.
 
According to the report, differentiation needs more than just features, as newer smartphone vendors begin to gain ground in the market.

Juniper Research believes Android vendors will struggle to compete on a features basis in the 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," says 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," he says.

"These players need to pair strong features with strong branding to have sustained success," Hunt adds.

The research also notes that the decline in Huawei’s fortunes, thanks to the United States 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," says Hunt.

"In the meantime, Huawei’s market share will decline to just over 9% in 2022, from 11% in 2019," he says.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

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