Is The Mobile Phone Market Really Dying?

It seems like only yesterday that fanatical groups were clawing desperately to get their hands on the latest iPhone. But that yesterday was around 2016, lest we forget, which marked the peak of the market. Now, not that Apple or Samsung are publically announcing it, sales are on a fairly steady decline. Since around 2016 a clear downward trend started, with 2018 being a serious bummer year. A jolt of life was briefly seen with the introduction of 5G, but the numbers have again settled back into a freefall.

Yes, the hot trend of scrambling to get the latest mobile tech is officially over. Just how far the numbers will fall remains to be seen, but it goes without saying that every tech bubble eventually bursts. All that remains now is to put the pieces together and try and understand what happened. The short answer is; there was nowhere for the technology to go.

But let's take a closer look.

The Unlimited Technology Misconception

There is no question that technology has come leaps and bounds in just a few short years. From the clunky Nokia bricks of the 90s, to the ultra-slick iPhones of today, it is staggering to have witnessed the progress. In fact, the progress has been so steady that some might have got the idea that there is no limit to how far it can all be pushed.

But technology, including mobile devices, is reaching an unacknowledged plateau. Big companies have desperately attempted to produce a next big thing, bringing out gimmicks like foldable screens. But the reception of these devices has been less than exciting, with flop after flop indicating a complete lack of consumer interest. That something like foldable devices even appeared is a clear sign of how desperate the situation is.

If there is no new thing, why would anyone need a new device?

Saturation Point Passed

But it isn't just the lack of a new trend that is killing sales. The other elephant in the room is a far more obvious one; saturation. PCs saw a very similar growth trajectory, with the industry first exploding like wildfire. But at a certain point, as logic dictates, everyone that wanted a PC had one. Yes, upgrades are still necessary, but the initial explosion of sales came to an end. The exact same has happened with mobile devices.

An easier way to say it is that everyone has a smartphone they are happy with and can play bingo for real money on, they see no reason to upgrade, and that prices are going up isn't helping the matter. It is all the perfect storm to bring a once ballooning industry to its knees in no time at all.

Is This The End?

So, is this the end for giants like Samsung and Apple? It isn't the end, but it is time for the behemoths to scale back. As with all markets, once saturation has been surpassed, mega-corporations must start trimming the fat. There is certainly no way that companies so big will fold, but they do need to start finding a realistic balance.