INTRODUCTION

Smart phones are a type of mobile phone that provides sophisticated technology with
capabilities comparable to that of a personal computer, such as internet, instant messaging,
e-mail, and an in-built keyboard, as well as a standardised platform for application
developers. With the rapid growth of technology, smart phones have become indispensable
tools in our everyday lives. People nowadays want convenience as well as products that
may combine numerous functions and provide them with more mobility and enjoyment.
As the entire globe enters a new era of technological performance, they want speed,
quality, and effectiveness, all of which must be incorporated in a solution small enough to
be carried in the pocket. Smart phones have proven to be one of the most intelligent and
practical technical innovations in human history. Smart phones can now perform practically
anything, including quicker networking systems, appealing and powerful apps, and
technology-savvy users are increasingly making these smart phones more capable.
Apple's Market Size
In the first quarter of 2022, Apple had an 18 percent market share, down from the previous
quarter. Samsung, Apple's long-time rival, grabbed the top place with a 23.4 percent
market share.
Apple market Growth
Apple's total net sales for the fiscal year 2021 were 365.82 billion dollars, a little rise from
the previous high of 74.52 billion dollars set in fiscal year 2020. In the previous 10 years,
Apple's yearly income has tripled.
The smartphone market is still dominated by Apple and Samsung.
Since 2009, Apple has been one of the top five smartphone manufacturers in the world.
Apple and Samsung were able to expand their market share due to the demise of erstwhile
industry leaders Nokia and RIM. Huawei has lately slid to third place in the smartphone
market as a result of political pressure, tariffs, and limitations imposed by the United States,
while Xiaomi, Oppo, and Vivo have gained progress.
The influence of the Coronavirus (COVD-19) epidemic on iPhone sales
While it's impossible to predict the long-term impact of the coronavirus (COVID-19)
pandemic on sales, the immediate impact was clear. While huge quarterly swings are usual
for Apple's revenue cycle, the iPhone produced less than $30 billion in revenue for two
consecutive quarters in 2017.
Although good sales in the fourth quarter of every year are usual with Apple products, a
strong performance in the fourth quarter of 2021, led by the new iPhone 13, earned Apple
the top place in terms of quarterly worldwide unit shipments.
Samsung's market share
Since 2009, the smartphone market has experienced significant fluctuations. Nokia used to
be the industry leader, with about 50% of the smartphone market share in 2007, but its
market share decreased to roughly 3% in 2013. Since 2009, Apple and Samsung have stayed
among the top five smartphone manufacturers in the world. Samsung's Galaxy, which
debuted in 2009, is the company's major line of smartphone devices, whereas Apple
focuses largely on the iPhone, which is the company's principal source of revenue.
Samsung's smartphone market share climbed dramatically over three years, rising from 3%
in the second quarter of 2009 to 32.2 percent in the second quarter of 2012. None of its
competitors have seen such rapid expansion in recent years. Samsung was able to preserve
its position as the worldwide market leader as the total smartphone industry increased. In
the first quarter of 2022, the Korean electronics behemoth supplied roughly 275 million
smartphones worldwide, representing for 23.4 percent of total smartphone shipments
worldwide. Samsung shipped more smartphones than Xiaomi and vivo put together.
Samsung's market share is increasing.
With 258 percent YoY increase, the brand also achieved its largest ever share in the
premium sector (>INR 30,000, $400). In 2021, Samsung had its highest ever retail ASP. With
a 28 percent market share, the brand dominated the INR 20,000-INR 45,000 (US$267-$600)
price range.
DATA-ANALYSIS AND INTERPRETATION
Apple iPhone: Supply and Demand Analysis The iPhone is understood as a line of
smartphones designed by Apple opposition. it's pass associate iOS software package and
was 1st free on Saints Peter and Paul, 2007. it's all the options that robot has however with
a unique approach. customers get the merchandise thanks to its eco-friendly computer
program. Its 1st introduction to the market was delineate as a “game-changer” for the
mobile business. Former Apple chief operating officer Steve Jobs pleased the first focus
from a pill towards a phone. It had associate calculable development price people $150
million over the span of thirty months. 6.1 million units of the first-generation iPhone were
oversubscribed over 5 quarters. a rise in sales annually is determined for every innovation
within the iPhone models. At present, the iPhone seven and seven and has attained a
complete of a hundred and seventy.11 million for the primary 3 quarters of 2017. Users are
secure with the iPhone Upgrade Program that may be a 24-month program that enables
customers of the merchandise to induce the newest iPhone per annum while not paying
the entire value direct. The u. s. were renowned for manufacturing quality smartphones
since the introduction of Apple merchandise particularly the iPhones. It helped the
economy of the country since the merchandise were being exported and localized to
alternative countries. Expansions of the Apple Company is seen in our country through the
approved retail stores like PowerMac Center and Switch. Its major success allowed the
corporate to invade foreign countries and expand their territory. The consistent export and
import of the merchandise helped in boosting the economy. In return, users were
additionally happy and easy going with the merchandise that they get from the corporate.
In the past few years, iPhone has seen a value hike of a minimum of ten times quite its
value approach back in 2009 with the iPhone 3gs merchandising at $99, whereas the
iPhone X (10) is merchandising at $999. The overwhelming demand for iPhones result in
varied value will increase to satisfy the availability and demand equilibrium.

The SUPPLY AND DEMAND CURVE may be a graphical portrayal of the association amongst
offer and demand. For our state of affairs, offer speaks to what range of iPhones area unit
created, whereas demand demonstrates what proportion the overall population want them
EQUILIBRIUM is once the quantity of iPhones equipped meets the demand of the folks,
however this can be not perpetually the case, particularly within the iPhone market. within
the market there's perpetually a time once there's offer AND DEMAND CURVE may be a
graphical portrayal of the association amongst offer and demand. For our state of affairs,
offer speaks to what range of iPhones area unit created, whereas demand demonstrates
what proportion the overall population want them. EQUILIBRIUM is once the quantity of
iPhones equipped meets the demand of the folks, however this can be not perpetually the
case, particularly within the iPhone market. within the market there's perpetually a time
once there SURPLUS. With iPhones, meaning there area unit a lot of created than area unit
being demanded. For older iPhones, just like the iPhone 6s, there area unit in all probability
a lot of surplus as a result of the demand for it's small of the discharge of newer models,
but the assembly of the merchandise wasn't ceased so making surplus. In Figure one, it is
seen that in Q1, the iPhones’ sales do high, whereas within the next 3 quarters, sales truly
lessened, that was as a result of the iPhones were simply unharness and most of the
customers already the phone at that point, whereas in Q3, there's another iPhone
unharness, so decreasing the demand for older models.
 DEMAND AND SUPPLY DYNAMICS FOR SAMSUNG AND APPLE SMARTPHONES
Demand and supply dynamics are the factors that change the supply and demand for the
given product. It affects the behaviour of manufacturers and consumers.
1. NUMBER OF BUYERS: If we talk about the Samsung smartphone buyers than in 2021, it
led the global smartphone market with annual shipment of 272 million units. Apple
smartphones recorded their highest ever annual shipment of 237.9 million units in 2021.
2. COMPLEMENT GOODS: In 2021, Apple smartphones reached 237.9 million units of
shipment due successful launch of iPhone 13 series and consistent performance of
iPhone 12 series. Due to high memory chip of Samsung smartphones, company was able
to hold the first position the market.
Due to the pandemic-related schooling, work, and entertainment from home, there has
also been a global growth in demand for mid-range and luxury smartphones, persuading
some people to upgrade their devices for a better overall experience.
3. INCOME: In 2021, Apple's iPhone revenue climbed by 35% year over year to $196 billion.
Samsung's smartphone revenue climbed by 11% year over year to $72 billion in 2021, up
from $64 billion in 2020. Consumers buy more Apple smartphones based on their
income, with Samsung devices coming in second.
4. TASTES: Based on the statistics in the third point, it can be concluded that customers'
tastes and preferences for Apple smartphones are higher than for Samsung
smartphones.
5. TECHNOLOGY: According to reports, Apple plans to offer OLED-display iPads and Macs in
2024. According to reports, Apple will employ Samsung screens. According to a recent
claim, Samsung has started producing sophisticated OLED panels that should match
Apple's specifications for future iPad and Mac models. Apple in collaboration with
Samsung is trying to get best display for their smartphones but which the Samsung will
use it first in its smartphones.
IDEAS AND PRACTICAL APPLICATIONS
SAMSUNG AND APPLE The two dominant forces in the mobile market have been Apple and
Samsung, investing a lot on marketing, and each of their flagship devices has been well-
received, especially in recent years. Earlier, companies like Nokia and Motorola dominated
the cell phone market, and when Apple launched 'iPhone' in 2007, it took over the market.
The smart phone, with a broad and multi-touch user interface, became very popular among
users. Over the years, Apple continued to dominate the smart phone market, but
Samsung's launch of the Samsung galaxy series in 2013 brought increased competition for
it. It was the large ads of Samsung coupled with rare Android features that the iPhone was
overtaken by the Samsung galaxy to become the world's most successful smart phone
product. As a result, a major chunk of the mobile market share has been continuously
retained by the two. They still do hold greater chunk of market share but with the entry of
other companies offering quality smart phones at affordable prices, growth of Apple and
Samsung’s market share has stalled. In the mobile business, Apple is broadly known as a
great inventor. It is known for gorgeous projects and new applications. Samsung, in
contrast, has long been seen as a follower. Since the launch of the Galaxy S4, Samsung has
regarded the revolutionary nature of the iPhone by Apple as "not so amazing" and
continues to be a notable rival.
When it comes to brand marketing, Apple has a peculiar approach. On social media, it has a
minimalistic presence. It uses TVCs for the advertisings. Samsung, meanwhile, is present on
a number of social media platforms such as YouTube, Twitter, and Facebook accounts.
Samsung has also connected social initiatives with major applications and channels to reach
audiences. Online advertising campaigns to reach consumers have been introduced by
Apple. There is a neat, simple and sharp interface on the iPhone website. Apple's iPhone
commercial is equivalent, often with a white backdrop, exotically appealing to consumers.
Also it never hesitates to point out the benefits of the smart phones to target audience.
Similarly, Samsung places importance on Galaxy S ads. It promotes cell phones, bringing a
dark blue interface in comparison to Apple's white backdrop. As a very colorful, fast and
thinnest cell phone, the Galaxy S is marketed and the benefits adopted are clearly
explained. Apple uses ads as a free and powerful way to communicate with consumers. In
the case of Apple, as more and more people are seen with an iPhone, other people are
forced to get one; this is referred to as the halo effect. Samsung, on the other hand, uses
social media such as Facebook to encourage its goods and all potential platforms or ads.
Apple and Samsung continue to experiment with different competitiveness tactics, such as
the introduction of new models, big technologies, competitor supply mockups, product line
extensions, aggressive promotional campaigns and litigation. There are variations between
these two brands as they follow many tactics to successfully target the consumer of their
market. Apple is a leader in creativity and Samsung is a close rival to it. By reducing costs,
Samsung uses incentive tactics, making it more competitive for consumers. Therefore, both
brands need to have successful marketing campaigns to keep up with their current
positions and to become a proclaimed leader.

MARKET DRIVERS AND RISK

The two firms' business models are continually merging and changing, yet there are still
significant differences. Samsung has been a worldwide power for longer and is involved in
more sectors than any other company. Apple's growth has been relatively swift and
focused.
Apple is a far more focused firm than Samsung in terms of target marketing, research, and
product creation. It's also a far more profitable business. Apple excels in design and
integration while taking a significant risk.
Apple's Capex looks significantly different from Samsung's because it is able to reduce R&D
expenditures by outsourcing hardware component manufacture and assembly. This
increases AAPL stock and inflates profits, which is one of the main reasons Apple can grow
at such a rapid pace.

SUPPLY CHAIN
Samsung is unique among mobile phone makers in that it prefers to build its own hardware
components rather than relying on third parties since it has the means to do so. In-house
manufacture accounts for over 70% of the primary components used in Samsung
Electronics devices. Samsung is far more than a smartphone manufacturer. It is a
corporation, a manufacturer, and the largest chip producer in the world. It manufactures
many of the components used in its devices, providing it a cost advantage and allowing it to
be more flexible in terms of what it produces and when it does so.
CONSUMER TRENDS FOR SMART PHONE
People are now shifting from basic mobile phone technology which has the capability to
carry out functions similar to personal computer. The companies belonging to this industry
service as developers and manufacturers of the product which increase efficiency and
production of cell phones, computer, televisions and other communication and information
systems. It is a huge industry with high growth potential, but it is sometimes go through
volatile cycle studies show support this relevance. Studies show that user’s information
needs, innovative features and applications continuously being added to mobile phone to
make them perform many more new functions. Consequently, mobile phone which is
essentially a communication device has undergone numerous transformations, making its
functionalities transcend the traditional voice communication between two individuals.
Observations show that there is a variation in the importance given by different age and
gender groups to select factors while buying mobile handsets. it was found that users aged
between 18 and 30 years are less price-sensitive than consumers of other age groups,
rather they consider ‘physical appearance’, ‘brand’, ‘value- added features’, and core-
technical features’ more important than others. The mature consumers on the other hand,
are more price-sensitive also; they have less knowledge about new technological
developments. Gender difference also emerged in ‘value-added features’ and ‘physical
appearance’. The female consumer has more orientation towards the ‘physical appearance’
of handset and do not find ‘brand’ as much important as men do. Studies have shown that
consumers while buying a smart phone not only focus on the hardware features but also on
the operating system that runs the smart phone. As people become more reliant on their
smart phone, developers can no longer consider the user experience without considering
apps in addition to the web. More than 60 percent of smart phone users download apps,
and they expect a seamless experience across all channels. Not long after face book
announced that slingshot, its new photo messaging app, was available for U.S. iOS and
android users. Consumer who own or plan to purchase a smart phone state that embedded
features such as size, quality of operating system, camera, keyboard, style and price,
influence their buying decision. Apple has revealed its latest iPhones, the iPhone 6 and 6
plus. Considering apple reputation as an innovator and market leader, media and general
public have recently focused apple’s ability to maintain category leadership and ongoing
innovation.

CONCLUSION
Communication equipment evolved swiftly into smaller and smaller consumer devices that
were initially designed for corporate usage as the smart phone evolved. Cell phones will
continue to have a large impact on economic growth and will remain vital in many parts of
the world in resolving societal concerns, despite the fact that data-hungry smart phone
addiction is often blamed for productivity reduction. The BlackBerry was the phone of
choice for busy CEOs until Apple released the first iPhone in 2007. These phones, along with
the other applications that followed, revolutionised the way we communicate, do business,
entertain ourselves, and socialise.
Technology has always been a source of global economic growth, but mobile technology,
particularly smart phones, has just lately emerged as a significant economic engine. One
idea is that much of the handset manufacturing is done in other countries.

(IN TRILLION US DOLLARS)

 YEARS CONTRIBUTION IN GDP
2014 3
2016 3.1
2017 3.3
2018 3.6
2019 3.9
2020 4.1
2021 4.4
2022* 4.5
2023* 4.62
2024* 4.76
2025* 4.84

SOURCE: STATISTA RESEARCH DEPARTEMENT, 22 APRIL 2022.

CONTRIBUTION IN GLOBAL GDP

4.76 4.84
5 4.62
4.4 4.5
4.5 4.1
3.9
IN TRILLION US DOLLARS

4 3.6
3.3
3.5 3.1
3
3
2.5
2
1.5
1
0.5
0
2014 2016 2017 2018 2019 2020 2021 2022* 2023* 2024* 2025*
YEARS

SOURCE: PREPARED BY AUTHOR ON THE BASIS OF SECONDARY DATA.

The mobile sector contributed 4.5 trillion dollars to global GDP in 2021, accounting for 5%
of global GDP. According to the source, this will rise to 4.9 trillion dollars by 2025.
The lines between a smartphone and the rest of the digital world are dissolving, opening up
new possibilities, especially now that 5G is here, promising a slew of inventive new services.
The Mobile Economy 2019, a new study, reveals that mobile internet usage is exerting an
impact on the United Nations' Sustainable Development Goals (SDGs).
REFERENCES
https://www.counterpointresearch.com/global-smartphone-share/
https://economictimes.indiatimes.com/news/international/business/samsung-reports-53-
jump-in-profit-despite-supply-chain-woes/articleshow/89145489.cms
https://www.counterpointresearch.com/global-smartphone-revenue-hits-record-450-
billion-2021-apple-captures-highest-ever-share-q4-2021/
https://www.indiatoday.in/technology/news/story/apple-2024-ipad-and-mac-models-may-
use-samsung-oled-with-better-display-tech-1920512-2022-03-04
https://www.statista.com/statistics/1100651/worldwide-mobile-industry-contribution-gdp/