q122/random_k4/random_4.md

MOBILE DEVICES | 2024

2024

MOBILE DEVICES

SAMPLE REPORT

Get an in-depth analysis of the current state, trends, and future of the mobile devices market, including insights into key drivers, changing product lifecycles, and manufacturing challenges.

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Table of Contents

Introduction ...................................................................................................................................................... 4

Industry Overview .......................................................................................................................................... 5

2.1 Segment Outlook .............................................................................................................................. 5

2.1.1 Smartphones ......................................................................................................................... 5

2.1.2 Tablets ..................................................................................................................................... 6

2.1.3 Smart Wearables ................................................................................................................. 7

2.1.4 Smart Hearing ....................................................................................................................... 8

2.1.5 Smart Clothing ...................................................................................................................... 8

2.1.6 China ......................................................................................................................................... 9

2.1.7 US .............................................................................................................................................. 9

2.1.8 Europe ...................................................................................................................................10

2.1.9 Latin America ......................................................................................................................11

2.2 Market Growth Enablers ..............................................................................................................12

2.2.1 5G Network Expansion .....................................................................................................12

2.2.2 The Rise of the Internet of Things (IoT) ......................................................................12

2.2.3 Shifting Consumer Preferences for Technology-Centric Living .......................12

2.2.4 Advancements in Artificial Intelligence (AI) .............................................................13

2.2.5 Growing Importance of Mobile Devices in Emerging Markets ...........................13

2.3 Market Inhibitors.............................................................................................................................14

2.3.1 Concerns over Data Privacy and Security .................................................................14

2.3.2 Market Saturation in Developed Economies ............................................................14

2.3.3 E-Waste and Sustainability Concerns ........................................................................14

3. Supply Chain Analysis ................................................................................................................................15

3.1 Geopolitical Tensions and Supply Chain Realignment ......................................................15

3.2 Semiconductor Scarcity and Strategic Countermeasures ...............................................15

3.3 Supplier Relationship Transformation ....................................................................................15

3.4

3.5

3.6

Localization Imperative ................................................................................................................16

Ecosystem Collaboration .............................................................................................................16

ESG Challenges ...............................................................................................................................16

3.7 China+1 ..............................................................................................................................................16

3.8

Impact of AI on Supply Chain .....................................................................................................17

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Technology Evolution ..................................................................................................................................18

4.1

5G, 6G, and Connected Ecosystem ...........................................................................................18

4.2 Augmented Reality, Virtual Reality, and Immersive Experiences .................................18

4.3

Foldable Devices.............................................................................................................................19

4.4 Ultra-Fast Charging Technologies ...........................................................................................19

4.5

Flexible Electronic Skins .............................................................................................................19

4.6 Next-Generation Wi-Fi .................................................................................................................19

4.7 Wearable Health Monitors...........................................................................................................20

4.8

4.9

Internet of Things (IoT) Integration ..........................................................................................20

Enhanced Processing Power ......................................................................................................20

Jabil Insights & Strategic Considerations ............................................................................................21

5.1 Current Market Outlook – Analyst Perspective ...................................................................21

5.2 Strategic Considerations .............................................................................................................22

5.3

Jabil Spend Data .............................................................................................................................23

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Introduction

The mobile device market is dynamic, with the industry constantly innovating to meet evolving consumer demand. Smartphones and tablets, the cornerstone of this market, are no longer simply communication tools; they've evolved into productivity powerhouses. Cutting-edge smart wearables, hearables, and clothing are redefining how humans connect with technology, offering health monitoring, augmented experiences, and seamless communication. The rise of 5G networks, advancements in artificial intelligence (AI), and the expanding Internet of Things (IoT) are accelerating the development of increasingly sophisticated mobile devices. This transformation is fueled by the desire for global connectivity, enhanced productivity, personalized experiences, and the adoption of cutting- edge technology. As mobile devices become increasingly integrated into daily life, a comprehensive understanding of this market landscape is crucial to support informed business decisions.

Scope of work

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Industry Overview

The global mobile device market is experiencing a period of transition and adaptation. While smartphone sales have shown signs of plateauing due to incremental upgrades and market saturation, other segments are emerging as growth drivers. Smart hearables and wearables are popular, offering enhanced connectivity and health-tracking features. Foldable devices are carving out a niche, albeit with high prices and durability concerns. Smart clothing is still in its nascent stage but shows promise in integrating technology seamlessly into everyday life. Tablets, meanwhile, are finding renewed relevance for productivity and entertainment purposes. Overall, the mobile device landscape is diversifying, with innovation focusing on integrating various devices and creating a more connected and personalized user experience.

2.1 Segment Outlook

2.1.1 Smartphones

While global smartphone shipment growth might have slowed down in previous years, the market is expected to stabilize and see modest growth due to several factors. One key driver is the replacement cycle for 5G-compatible devices, as companies like Apple and Samsung, among others, continue to release advanced models. Additionally, the rise of foldable smartphones is creating a new niche market segment with premium pricing. According to an article published by Arstechnica in February 2024, the top 7 selling smartphones in 2023 were manufactured by Apple, whereas Samsung manufactured the next 3 in the list.

Figure: List of Top 10 highest-selling smartphones in 2023 and their adoption rate (%)

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2.1.2 Tablets

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Figure: Market Share of Top Tablet Vendors Worldwide (April 2023 – April 2024)

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2.1.3 Smart Wearables

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2.1.4 Smart Hearing

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2.1.5 Smart Clothing

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2.1.6 China

China is expected to remain dominant in the global mobile devices market, propelled by its massive consumer base and robust local manufacturing capabilities. With leading companies like Huawei, Xiaomi, and OPPO continuously innovating, China's market share is substantial. However, geopolitical tensions and trade restrictions could impact growth. The aggressive push for 5G adoption and beyond in China makes it likely that a significant portion of mobile sales will be 5G-capable devices in the coming years.

Figure: Chinese Smartphone Shipment, By Brand

Source: Counterpoint Research

2.1.7 US

The US will likely see sustained growth in the mobile devices sector, driven by a strong consumer preference for high-end smartphones and the rapid rollout of 5G networks. Apple and Samsung remain dominant players, with the former enjoying a loyal customer base. Introducing innovative features and technologies, such as foldable screens and AI-enhanced applications, could spur replacement cycles. However, the market is nearing saturation, with smartphone penetration already high. Growth may increasingly come from wearable devices and smart home technologies.

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2.1.8 Europe

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2.1.9 Latin America

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2.2 Market Growth Enablers

2.2.1 5G Network Expansion

Increased speeds and decreased latency offered by 5G fuel demand for advanced mobile devices capable of handling data-intensive applications, augmented reality experiences, and cloud-based services. Furthermore, the growth of high-quality video streaming on mobile devices drives increased subscriptions to content providers, which fuels demand for devices capable of delivering an exceptional viewing experience. This surge in demand is driving innovation across smartphones, wearables, and hearables.

2.2.2 The Rise of the Internet of Things (IoT)

2.2.3 Shifting Consumer Preferences for Technology-Centric Living

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2.2.4 Advancements in Artificial Intelligence (AI)

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2.2.5 Growing Importance of Mobile Devices in Emerging Markets

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2.3 Market Inhibitors

2.3.1 Concerns over Data Privacy and Security

Data privacy and security concerns have cast a shadow over the mobile device market, eroding consumer trust and hindering industry growth. Frequent and increasingly sophisticated cyberattacks and invasive tracking and data collection practices by apps and services have fueled these concerns. Vulnerabilities in operating systems and applications further exacerbate the risks, leaving users' personal information exposed to potential breaches and misuse.

2.3.2 Market Saturation in Developed Economies

2.3.3 E-Waste and Sustainability Concerns

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3. Supply Chain Analysis

3.1 Geopolitical Tensions and Supply Chain Realignment

The mobile devices industry faces increased complexity and risk due to heightened geopolitical tensions, particularly between major technology-producing nations. These tensions have led to stricter trade policies, tariffs, and restrictions on technology transfers, significantly impacting global supply chain dynamics. In response, companies are urgently reassessing and realigning their supply chains to reduce dependency on regions with high geopolitical risks. This includes diversifying sourcing and manufacturing locations to more geopolitically stable or neutral countries. Moreover, there is an accelerated trend towards the friend-shoring/nearshoring of critical components where companies prefer to trade with allies or within blocks that share similar regulatory and political frameworks. This strategic shift aims to safeguard access to essential materials and components, such as rare earth metals and advanced semiconductors, which are pivotal for mobile device manufacturing. Additionally, companies are increasingly investing in technology and infrastructure to enhance supply chain visibility and resilience, enabling more agile responses to future geopolitical shifts.

3.2 Semiconductor Scarcity and Strategic Countermeasures

3.3 Supplier Relationship Transformation

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3.4 Localization Imperative

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3.5 Ecosystem Collaboration

3.6 ESG Challenges

3.7 China+1

.

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3.8

Impact of AI on Supply Chain

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4. Technology Evolution

4.1 5G, 6G, and Connected Ecosystem

The acceleration of 5G adoption and early exploration of 6G's capabilities will underpin a new generation of mobile devices and experiences. Faster speeds, reduced latency, and massive device connectivity will supercharge applications like real-time AR/VR experiences, remote collaboration, high-fidelity cloud gaming, and a flourishing Internet of Things (IoT) landscape. These developments drive innovation across smartphones, wearables, and hearables, enabling unprecedented connectivity and interaction.

4.2 Augmented Reality, Virtual Reality, and Immersive

Experiences

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4.3 Foldable Devices

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4.4 Ultra-Fast Charging Technologies

4.5 Flexible Electronic Skins

4.6 Next-Generation Wi-Fi

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4.7 Wearable Health Monitors

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4.8

Internet of Things (IoT) Integration

4.9 Enhanced Processing Power

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5. Jabil Insights & Strategic Considerations

From a technological standpoint, the mobile device market is poised for significant growth in the next 3-4 years. The widespread adoption of 5G networks is expected to unlock the full potential of mobile devices, enabling faster speeds, lower latency, and new applications like augmented reality and virtual reality. AI and machine learning advancements will further enhance device capabilities, offering more personalized experiences and improved functionality. The convergence of mobile devices with other emerging technologies like blockchain and IoT will also create new opportunities for innovation and growth.

From a regional standpoint, the mobile device market is expected to experience diverse growth trajectories. In developed regions like North America and Europe, growth is expected to be steady but slower due to market saturation. However, emerging markets like India, Southeast Asia, and Africa will rapidly grow as smartphone penetration increases and consumers upgrade to newer models with advanced features. These regions will become critical drivers of the global mobile device market, with local brands playing a significant role in catering to these diverse consumer bases' unique needs and preferences. Additionally, government initiatives to improve digital infrastructure and promote affordable access to mobile devices will further fuel growth in these regions.

5.1 Current Market Outlook – Analyst Perspective

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5.2 Strategic Considerations

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5.3 Jabil Spend Data

Figure: Mobile Devices Spend by Category (2020 Vs. 2023)

Note: This data is based on Jabil's historical spending data for the Mobile Device Customer Segment

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Figure: Category Spend YoY (%)

Note: This data is based on Jabil's historical spending data for the Mobile Device Customer Segment

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This document is provided for informational purposes only. It is not intended to be used or construed as investment advice. The information contained in this document is not an offer to buy or sell any securities or other financial instruments. Any investment decisions made based on the information contained in this document are made at the sole discretion of the reader. The author(s) of this document are not investment advisors and are not registered with any regulatory authority. The author(s) of this document disclaim any liability for any direct or consequential loss arising from any use of this document or its contents.

JABIL and the JABIL logo are the property of Jabil Inc. Other marks used herein are used for identification purposes only and are the property of their respective owners.

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