The economy of pretty much the entire world is in disarray, and this is mostly thanks to the pandemic that brought supply chains to a grinding halt for a time. While supply chains are starting to get more or less back to normal, there is a widespread chip shortage that is causing a number of problems for smartphone manufacturers since said chips are crucial for any and all phones that these companies are trying to sell.
Major companies like Apple and Samsung have managed to get through this crisis to one extent or another due to the reason that they have massive scale and they can leverage that to keep their products on shelves. With all of that having been said and now out of the way, it is important to note that smaller companies are having a much harder time of it and are struggling to come up with the right kinds of solutions.
Rising Qualcomm processor prices have led to some smaller smartphone companies opting for Unisoc instead since it offers budget processors that are more or less adequate. Larger companies can often stagger the release dates for their phones based on when they expect to receive required supplies, but that’s not something that smaller companies can afford since they rely on the revenues that come with new product launches to keep themselves above water.
This indicates how monopolies can be formed in various industries. The larger a company is, the more likely it will be to weather the storm. In fact, as per Canalys data, Apple managed to supplant Samsung as the largest shipper of smartphone devices in 2021 after two years in which the latter dominated. It did so by changing the specs of its devices according to what was available. This global shortage is likely going to continue, and it might make the smartphone market increasingly unequal.
Read next: Specific Absorption Rates And Radiation Levels Of Top Smartphones And Brands In 2022
Major companies like Apple and Samsung have managed to get through this crisis to one extent or another due to the reason that they have massive scale and they can leverage that to keep their products on shelves. With all of that having been said and now out of the way, it is important to note that smaller companies are having a much harder time of it and are struggling to come up with the right kinds of solutions.
Rising Qualcomm processor prices have led to some smaller smartphone companies opting for Unisoc instead since it offers budget processors that are more or less adequate. Larger companies can often stagger the release dates for their phones based on when they expect to receive required supplies, but that’s not something that smaller companies can afford since they rely on the revenues that come with new product launches to keep themselves above water.
This indicates how monopolies can be formed in various industries. The larger a company is, the more likely it will be to weather the storm. In fact, as per Canalys data, Apple managed to supplant Samsung as the largest shipper of smartphone devices in 2021 after two years in which the latter dominated. It did so by changing the specs of its devices according to what was available. This global shortage is likely going to continue, and it might make the smartphone market increasingly unequal.
Read next: Specific Absorption Rates And Radiation Levels Of Top Smartphones And Brands In 2022