What is the smartphone multiplier?
There are over 3.3 billion smartphone users in the world today.
At the moment, the smartphones themselves contribute over half the market value, estimated to pull in $944 billion in total revenue in 2020. Despite the continued hype surrounding the release of new models, global unit shipments of smartphone devices appears to have reached a saturation point, due to a lack of product innovation compared to the last years and simply because people are simply holding onto their devices for longer than in the past.
What is a “Smartphone Multiplier”?
People think about smartphones when they think about the smartphone market, but an equally important part of the equation is the numerous accessories, apps and complementary devices that help us stay connected with the digital world.
The ecosystem of these products and services are known as smartphone multipliers.
According to Deloitte, this ecosystem will drive $459 billion of revenues in 2020, an impressive 15% increase from the prior year.
Mobile accessories are the third-largest subcategory in the smartphone multiplier market, after the mobile advertising and apps market. The smartphone multiplier market becomes a thriving economy that could soon surpass the smartphones themselves in terms of revenue.
Accessories such as cases, now outsell many other major hardware categories, including tablets, game consoles, and VR helmets.
As a result, smartphone multipliers will continue to evolve and flourish, presenting a unique opportunity for investors and businesses.
Altogether, it’s expected that the smartphone multiplier market will grow between 5 and 10% annually through 2023, likely propelling the entire smartphone economy past the $1 trillion benchmark in the coming years.