The cellphone market in China is edging towards an oligopoly, controlling 90 percent from the previous two-thirds of the market.
While Apple is intensifying efforts to dominate the mobile phone market through its enclosed but user-friendly eco-system, the environment is increasingly rigor for dozens of smaller cellphone makers loaded with Android operating system.
Another force that batters small firms is the ever more powerful cellphones they produce. That sounds sarcastic, but true. The time people use for one phone extends to more than 24 months, double the phone’s life cycle three years ago. The phones are good enough to be less likely to be replaced by new ones.
One opportunity that may encourage small firms is the coming 5G era with faster speeds and more possibilities in AI. Small firms are prone to challenges but quick to explore and adapt.