US Smartphones Market Size, Share, Trends, Growth and Forecast 2032

US Smartphones Industry Prospective:

The US smartphone market size was worth around USD 62.82 billion in 2023 and is predicted to grow to around USD 75.73 billion by 2032 with a compound annual growth rate (CAGR) of roughly 2.10% between 2024 and 2032.

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US Smartphones Market: Overview

Combining the features of a conventional mobile phone with cutting-edge computer power, a smartphone—often just referred to as a phone—is a portable gadget. Users may access a variety of programs and services, including social media, email, web browsing, and multimedia playback and streaming, due to its touchscreen interface. Along with functionality for texting, voice calls, and internet-based messaging apps, smartphones also come equipped with cameras, GPS navigation, and other communication features. The more sophisticated hardware features, a wide range of mobile operating systems, internet connectivity, business apps, mobile payments, and multimedia features like gaming, music, video, and television set smartphones apart from older-style feature phones.

Key Insights

• As per the analysis shared by our research analyst, the US smartphones market is estimated to grow annually at a CAGR of around 2.10% over the forecast period (2024-2032).
• In terms of revenue, the US smartphones market size was valued at around USD 62.82 billion in 2023 and is projected to reach USD 75.73 billion, by 2032.
• The rising disposable income is expected to propel the global US smartphones market growth over the projected period.
• Based on the operating system, the IOS smartphones segment is expected to dominate the market over the forecast period.
• Based on the price, the high-range segment is expected to capture the largest market share over the forecast period.
• Based on the sales channel, the online sales channel segment is expected to grow at the fastest rate over the forecast period.
• Based on the territory, New York is expected to dominate the market over the projected period.

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US Smartphones Market: Growth Drivers

Growing internet penetration drives market growth

The US smartphone market is being driven by the increasing use of the internet. Furthermore, more people are getting online, and mobile phones are quickly becoming necessary instruments for online activities and connectivity that drive industry expansion. Smartphones offer quick and easy access to a variety of internet services, including social media interaction, e-commerce, multimedia streaming, and communication apps. In addition, the convenience of being connected is driving widespread product acceptance, which is speeding up market expansion, especially in emerging markets. Consequently, top manufacturers focus on these developing markets and provide reasonably priced internet-capable devices to meet the growing demand of consumers who want online connectivity.

US Smartphones Market: Restraints

Saturation and environmental impact impede market growth

Since a sizable portion of the populace already owns smartphones, the market is almost saturated. This reduces the possibility of substantial growth coming from the acquisition of new clients alone. Furthermore, the manufacture and disposal of smartphones add to environmental issues, drawing attention and possibly leading to legislative actions that may affect the costs and methods of production. Thus, this is expected to hamper the US smartphones industry expansion over the projected period.

US Smartphones Market: Opportunities

Technological advancements offer an attractive opportunity for market growth

Manufacturers are always innovating, bringing in fresh features and enhancements that grab customers' attention. Furthermore, impacting the US smartphones market expansion is the integration of sophisticated camera systems featuring numerous lenses, high-definition screens, quicker computers, and increased storage capacities. Further revolutionizing the mobile phone experience and driving market expansion is the incorporation of cutting-edge technology like artificial intelligence (AI), augmented reality (AR), and fifth-generation (5G) connection. Consequently, the market keeps growing as producers compete with one another to produce ever more powerful and feature-rich gadgets that push the boundaries of technology.

US Smartphones Market: Challenges

Technology constraints pose a major challenge to market expansion

While demand is driven by technology developments, these advancements also provide difficulties, including the requirement to be compatible with emerging network technologies like 5G, high development costs, and complex integration. Thus, the technology constraints might be a major challenging factor for US smartphone industry expansion.

US Smartphones Market: Segmentation

The US smartphones industry is segmented based on operating system, price, sales channel, and territory.

Based on the operating system, the US smartphones market is bifurcated into Android smartphones, iOS smartphones, and others. The iOS smartphones segment is expected to dominate the market over the forecast period. Apple's integrated ecosystem of devices, services (such as iCloud and Apple Music), and software (iOS and App Store) has resulted in high brand loyalty among consumers. Among current iPhone users, this ecosystem lock-in frequently leads to strong retention rates and recurrent purchases. In addition, iPhones are priced higher than many of their Android competitors since they are perceived as premium gadgets. This approach places a strong emphasis on perceived exclusivity, build quality, and design aesthetics. Thus, this is expected to propel the market growth.

Based on the price, the US smartphones industry is segmented into the high range, medium range, and low range. The high-range segment is expected to capture the largest market share over the forecast period. Typically priced at launch at or above $800, high-range smartphones are distinguished by their higher price points. This cost is a reflection of the devices' cutting-edge features, high-quality components, and creative technology. Leading producers also release flagship models in the high-end market, such as Google (Pixel flagship series), Samsung (Galaxy S series), Apple (iPhone Pro series), and others. High-end processors, sharp screens, sophisticated camera setups, and 5G connection are just a few of the features that these smartphones include.

Based on the sales channel, the US smartphones market is segmented into offline and online. The online sales channel segment is expected to grow at the fastest rate over the forecast period. It is now simpler for customers to buy smartphones online due to the expansion of e-commerce platforms and mobile purchasing apps. Sales of smartphones have generated a substantial amount of revenue overall thanks to this convenience. Online platforms can facilitate customer engagement tactics, tailored recommendations, and focused digital marketing efforts that increase traffic and conversion rates. Search engine optimization (SEO), influencer marketing, and social media platforms are essential for online smartphone promotion. For instance, secondary analysis indicates that in 2023, retail m-commerce sales in the US will surpass 491 billion USD. That amount is expected to nearly double by 2027, reaching a total of 856 billion dollars.

US Smartphones Market: Report Scope

US Smartphones Market: Territory Analysis

New York is expected to dominate the market over the forecast period

New York is expected to dominate the US smartphones market over the forecast period. Smartphones and other tech & lifestyle trends are often adopted early by New Yorkers. Popular trends in New York City frequently spread to other parts of the US market. Furthermore, major smartphone manufacturers and carriers have a large number of flagship stores and retail locations in NYC. These places act as important focal points for consumer interaction initiatives, promotions, and new product introductions. Moreover, a substantial portion of the tech-savvy people, professionals, and students that make up NYC's diverse population value smartphones with cutting-edge features, fast internet (5G), and app compatibility for work as well as leisure. Thus, this is expected to drive the market growth in the territory.

US Smartphones Market: Competitive Analysis

The US smartphones market is dominated by players like:

• Samsung
• Apple
• Google
• LG
• HTC
• Blackberry
• Panasonic
• Sharp
• ZTE
• Sony

The US smartphones market is segmented as follows:

By Operating System

• Android Smartphones
• iOS Smartphones
• Others

By Price

• High Range
• Medium Range
• Low Range

By Sales Channel

• Offline
• Online

By Territory

• New York
• San Antonio
• San Jose
• Los Angeles
• Chicago
• Others