Smartphone Industry Facing Extended Replacement Cycles

According to the latest supply chain reports, the smartphone industry is still experiencing a downturn cycle, despite the anticipated wave of upgrades yet to materialize.

It’s revealed that various smartphone brands have revised down their annual shipment expectations. Apart from Apple, which has confirmed a reduction in its 2024 annual shipment forecast, Samsung Electronics has also made corresponding adjustments.

Research firm TechInsights predicts that by 2023, the replacement cycle for smartphones globally will extend to the longest in history, reaching 51 months. In China, while there’s a slight increase in consumer replacement pace, it still exceeds 40 months.

With the slowing pace of user upgrades, market competition has intensified further. Simultaneously, there’s a shift in consumer mindset, prioritizing durability and practicality over merely chasing faster upgrade cycles, such as with the iPhone.

Experts point out that consumer purchase expectations have shifted towards longer periods of use, hence they are more willing to pay higher prices for superior performance and durability in smartphones.

In the increasingly saturated market scenario, smartphone manufacturers continuously strive to enhance product quality and seek higher profits through price increments.

In this context, a “two-way rush” between consumers and manufacturers has emerged, making it difficult for consumers to find reasons for upgrading their phones, thereby further extending the replacement cycle.

Against this backdrop, smartphone manufacturers relying more on offline channels face greater competitive pressure. Those unable to secure sufficient profits may gravitate towards the top-tier players, aligning with consumer trends.

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