Sneak peek into the smartphone world

Smartphones, the present closest friend of almost all human beings, has been in in the
business platform for a very long time. To people, communication has the same significance
as that of breathing. It makes possible to spread knowledge and forms relationships between
them. People needed to communicate within a short period of time with each other. Thus, the
invention of smartphones was a big breakthrough in the area of technology and it satisfied the
needs of people. With smartphones, humans are able to connect and send messages and
emails.

Smartphones made the life of people easier as they could do business efficiently with the use
of smartphones. Almost all the important activities relating to business or even their family
matters could be done through smartphones. The advancement in the technology has made it
possible for the people to even do their money transactions through smartphones. Nowadays,
there is no one who does not have a smartphone since without it one cannot keep in contact
with another, being their family members, friends and clients. With the introduction of
Apple’s iPhone in 2000 it has turned to a major player in the market in terms of business.
Apple upgraded the smartphone industry by introducing customer friendly interface and
virtual keyboard. Android phones with the above features came into market in 2008. Among
the smartphone users in the world, China, India and US have the highest number.

Smartphone sales: Up or Down?

Since social media can exchange data, videos, photographs, and other activities, social media
plays a vital role in the success of smartphones. Social networking is exemplified by
Facebook and Twitter. Social networking and smartphones mean that even on mobile, more
and more people communicate online. The sales of smartphone for the past years has shown
an uptrend. Currently, smartphones running the Android operating system are the most
popular with the largest share of the world market. Over the last 10 years, Android has
consistently maintained a leading role in mobile sales worldwide. More Android devices are
sold than Windows, iOS and Blackberry OS devices combined. The Apple iOS operating
system is probably the world's second most-used operating system. Over the years, iPhone
sales have risen strongly. The number of smartphones sold to customers was around 1.52
billion units in 2019, a large rise from the 680 million units sold in 2012. This implies that in
2019, more than 19 percent of the total world population owned a smart computer, a figure
that is projected to grow to 37 percent by 2021. In North America, smartphone penetration
reached 60.5 percent in 2018. Smartphone revenues in the United States alone are estimated
to be worth about 77.5 billion U.S. dollars in 2019, up from 18 billion dollars in 2010. By
2021, almost 84.3% of all mobile users in the United States are expected to own a
smartphone, an improvement from the 27% of mobile users in 2010.1 (Cell phone sales
worldwide 2007-2020 n.d.)

1
https://www.statista.com/statistics/263437/global-smartphone-sales-to-end-users-since-2007/
 Smartphone traffic worldwide per
month 2015-2025
160
140
120
100
80
60
40
20
0
2015 2016 2017 2018 2019 2022* 2023* 2024* 2025*

Source: https://www.statista.com/statistics/739002/worldwide-smartphones-monthly-data-
traffic/

Difference between smartphone sales between different countries

In 2019, the number of smartphones sold globally reached over 1.5 billion units. The same
year, it was estimated that over 40 percent of people in the world will have access to a
smartphone. However, the upward trend in global smartphone sales revenues since 2013 is
expected to plateau at near 480 billion U.S. dollars in 2017. Asia currently dominates the
mobile industry both in terms of manufacturing and revenue. There are a large number of
smartphone manufacturers in the country, such as Huawei Technologies Co., Ltd., Samsung
Electronics, and Vivo Communication Technology Co. Ltd., Xiaomi Corporation, which has
the lion's share of the smartphone industry as a whole. By this time, China is expected to
produce about a quarter of the global revenue from smartphone sales worldwide, amounting
to more than 130 billion US dollars. The United States is expected to cross 55.6 billion U.S.
dollars in revenue in 2017 as the second most active smartphone market. In 2018, at over 420
million units, more smartphones were sold in Greater China than any other region in the
world. As annual global smartphone sales have peaked to about 1.5 billion units in recent
years, growth continues to be seen only in China and other developing Asian countries. The
growth potential in China is reflected in the country's smartphone penetration rate, as only
about half the population currently uses a smartphone. Sales in the Americas region and
Europe are expected to decline in the coming years, with Western Europe and North America
predicting the biggest decrease in smartphone sales in 2019. Smartphone sales are projected
to decline by about 8 million units in 2019 compared to the previous year in each of these
regions. Smartphone sales in Sub-Saharan countries and North Africa as well as the Middle
East are projected to rise from 2018 to 2020, in comparison to the declining markets in
Europe and the Americas. Since 2013, exports have been gradually increasing to the Middle
East and Africa. The continued low penetration of smartphones and the average selling price
for smartphones, which is just half the average price in North America, are drivers of growth
in these markets.

Product life cycle? When customers replace their phones?

In the U.S. and Europe, in particular, according to data from Market Research Company
Kantar World panel, the life cycle of a smartphone has been gradually growing. In 2016, on
average, before replacing, American smartphone owners used their phones for 22.7 months.
That number had risen to 24.7 by 2018. Users tracked by Kantar World panel in five
European countries, France, Germany, Great Britain, Italy and Spain, maintain their phones
for much longer. The life cycle of a smartphone was extended from 2016 to 2018 by almost
three months, from 23.4 to 26.2. The longest average of 27.7 months in 2018 was logged by
users in Great Britain. At 20.2 months in 2016 and 21 months in both 2017 and 2018, the life
cycle of a smartphone in China was comparatively shorter.

Replacement cycle length of smartphones

worldwide 2013-2020, in months
40
35
30
25
20
15
10
5
0
2013 2014 2015 2016 2017* 2018* 2019* 2020*

Source: https://www.statista.com/statistics/786876/replacement-cycle-length-of-
smartphones-worldwide/

Market share of various companies

By units exported during Q2 2020, accounting for 20 percent of the overall market, Huawei
overtook Samsung to become the smartphones market leader. This represents the first time
that the top spot was taken by Huawei, with Apple and Samsung usually jostling for the front
role. Samsung is consistently among the world's leading smartphone manufacturers, known
for consumer goods such as handheld devices and home entertainment systems. The South
Korean firm has maintained a 20 to 30 percent market share in the smartphone market since
2012. Over the years, Apple has consistently been its nearest competitor, while brands like
Lenovo and Huawei have gained ground. The Galaxy series, the first of which was released
in April 2009, is Samsung's main line of smartphone products. As a result of the coronavirus
(COVID-19) pandemic, Samsung has experienced a drastic drop-off in shipments. In the
second quarter of 2019, the company delivered 75,5 million units, a number that dropped to
54,2 million units by the second quarter of 2020. Apple is the world's largest mobile maker,
with more than 37 million iPhones delivered globally by the company in the second quarter
of 2020. This gave the business a 13.5 percent global market share. (Smartphone market
share worldwide by vendor n.d.)

Smartphone unit shipments worldwide 2007-

2019, by vendor
Others
1600
vivo
1400 Lenovo
LG
1200 RIM
1000 HTC
Nokia
800 Xiaomi
OPPO
600 Huawei
400 Apple
Samsung
200

0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: https://www.statista.com/statistics/271539/worldwide-shipments-of-leading-
smartphone-vendors-since-2007/

Market share by OS

Smartphone shipment share worldwide by

operating system 2014-2023
90
80
70
60 Android
iOS
50
40
30
20
10
0
2014 2015 2016 2017 2018 2019* 2020* 2021* 2022* 2023*

Source: https://www.statista.com/statistics/277048/global-market-share-forecast-of-
smartphone-operating-systems/
Price bands and percentage of customers using smartphone
The price of smartphone ranges from around 2000(Indian rupees) to around 14.7 crore. One
of the cheapest smartphones to provide 4G VoLTE support is the Reliance Lyf Flame 3. The
smartphone, priced at Rs 2,999, has a 4-inch display and is powered by a quad-core 1.5GHz
processor. It runs the operating system Android 5.1 Lollipop and comes with 512 MB of
RAM and 4 GB of internal storage (up to 32 GB extensible) The world's costliest cell phone
has been launched by a British corporation - a gold iPhone encrusted with almost 200
diamonds retailing at a hefty 1.92 million pounds, or Rs. 14.7 crore. The handset, designed
for the Liverpool-based Goldstriker International by Stuart Hughes, is made from 22-carat
gold.

Global smartphone sales by price band in 1H

2019 and 1H 2020
45
40
35
30 1H 2019
1H 2020
25
20
15
10
5
0
<$150 $150-250 $250-400 $400-600 $600-800 >$800

Source: https://www.statista.com/statistics/1169438/share-of-global-smartphone-sales-by-
price-category/

Looking ahead…
In 2019, the smartphone market was estimated at USD 714.96 billion and is projected to
cross USD 1351.8 billion by 2025, at an 11.2 percent CAGR over the 2020-2025 forecast
period. The sales of Smartphone markers have been driven for years by increased consumer
spending across regions. However, the market's growth is plateauing, despite intense levels of
penetration. For example, 91 percent of U.S. households own smartphones and are packed at
distinct price points with vital features. Smartphone shipments saw a decline due to the
outbreak of COVID-19, as countries are still battling with the pandemic. There is a 15.7 %
decrease year-on-year in unit shipments, according to a survey, from 331.8 million in
Q2/2019 to 279.7 million in Q2/2020.

Expected growth by IDC, a total of 1.34 billion units delivered in 2020 will enter the
worldwide smartphone market, down 2.3 per cent from the 1.37 billion units shipped in 2019.
From there, in 2024, the final year of our forecast period, shipments would reach 1,51 billion
units, resulting in a 2.0% CAGR . "The impact of COVID-19 on the supply chain has forced
us to lower our 1H20 shipment numbers compared with our previous forecast," said Anthony
Scarsella, research manager with IDC's Worldwide Quarterly Smartphone Tracker. "For
additional weeks if not months, logistics, labor, and transportation would likely remain
affected by the virus. Consequently, COVID-19 has already begun to shape the smartphone market
as the first half shipments will demonstrate a large decline and then attempt to rebuild in 2H20,
assuming the virus can be controlled."

Needs and demands for screen protection

Smartphone unit shipments by screen size

worldwide 2018-2022
800
700
600 0" < 5"
5" < 5.5"
500 5.5" < 6"
400 6" < 7"
300
200
100
0
2018 2019 2020 2021 2022

Source: Screen size- https://www.statista.com/statistics/684294/global-smartphone-

shipments-by-screen-size/
 Quarterly smartphone display shipment
share worldwide 2017-2019, by shape
100
90
80
70 Standard
60 Notch
Hole
50
40
30
20
10
0
3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19*

Source: Screen notch- https://www.statista.com/statistics/994802/worldwide-smartphone-

display-shipment-share-by-shape/

Quarterly smartphone display shipments by

technology worldwide 2018-2019
250

200
LTPS TFT LCD
a-Si TFT LCD
150
AMOLED
100

50

0
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19* Q3'19*

Source: https://www.statista.com/statistics/1034641/smartphone-display-shipments-by-
technology-worldwide/

The demand for screen protection has been and will always be at an increasing pace. People are
concerned about the safety of their smartphones from the possible damages caused from high impact
fall and scratches to the screen. This in turn will affect the demand for screen protector in a positive
way. A screen protector is an inherent part of the consumer purchase cycle for a smartphone. The
smartphones being expensive and the risk of screen damage have paved the way for the increased
sales of screen protectors. The demand for screen protector is expected to witness a striking growth
due to the rising shipments aided by the e-commerce industry. The increasing demand for used
smartphones is also expected to rise the demand for screen protectors. Growing product design
innovations, such as introduction of 2.5D and 3D screen protectors that enhance the user experience,
are expected to boost the smartphone screen protector market growth.

Alternatives for screen protection

While not dropping it in the first place is the best way to keep the phone screen from
breaking, there are several other ways to mitigate the harm caused to the phone screen when
you unintentionally drop it. The one that is commonly used by all is the use of screen glass.
The other ways used by customers to protect their smartphones are using a bumper case, pop
sockets, car phone holder and using skin on your phone for extra grip.

Bumper Case

With the technological advancements, for almost every model of the major phone
manufacturers, several businesses have come up with powerful and durable bumper cases.
This is due to the increased need and demand for the bumper cases of the smartphone. There
are typically two types of cases available in the industry. One is something that is trendy and
bright. These cases are only strong enough to shield the phone from slight scratches and can
barely mitigate the damage caused by a heavy fall. The others are not that good looking, but
have good and solid building results. They could add some more grams of weight to your
phone, but when you drop your phone from a quite reasonable height, it will absorb the full
damage. The shock of the drop is absorbed by the thick rubber ridges which are designed on
the edges of the phone through the bumper case.

The main disadvantage of bumper case is that the material used for the cases would be of low
quality, so there is no assurance of quality. Besides this, it weighs up the smartphone.

Pop Sockets

Pop sockets are plastic contraptions attached to a phone's back. They have a circular base, a
stylish disc and a flexible stem. You can grab the pop socket attached to your phone using
either one or two fingers, and you can immediately feel a much stronger grip and hold onto
your phone. Pop socket users have shared their wonderful memories of using them every day.
The benefit of using a pop socket is that you can use only one hand to work your phone
comfortably. So if you're someone who finds it hard to use your phone with one hand and
needs to use two hands to operate properly with your phone, pop sockets are certainly
recommended for you. Pop sockets can cause inconvenience in handling. More than
protection, they are used as a part of fashion concept.

Skin for extra grip

One of the easiest ways to add more grip to your phone is by applying a skin on your phone.
When it comes to adding extra grip to your screen, Skins has proven to be very useful. It's
another cost-effective solution that can save your phone's screen and prevent you from
spending extra money to fix a damaged screen. It fails at times to keep the expectation of the
customers’ i.e protecting the screen from damages. Rigorous falls could eventually damage
the phone regardless of this skin.
 Car phone holder

 Navigation, texting or taking part in a call could be the reason for using the phone in their
car. The use of a car phone holder will prevent losing the phones in these situations. Often, it
is against the law to use your mobile phone when driving your car. With the assistance of a
car phone holder, you will be able to use your phone without the possibility of losing it for
navigation purposes, music, etc. It is another viable solution to minimise the chance of your
phone falling and the screen cracking. In many countries use of such gadgets are not
appreciated. Hence, it is not ethically suggested. Even though the product offers hassle free
driving, it results in unhealthy practices of driving.

Screen protection: facts and numbers

Presently, we are in the most advanced age of science and technology. Still an unbreakable
smartphone is a dream. The British people spent more than £ 680 million last year according
to the latest report, only to get the screens of their phones repaired. The study found, from a
survey of 2,000 cell phone users that 53 percent spent about £ 30 or more just to get their
phones fixed last year alone. The figures can add up to a large sum, with about 42.7 million
cell phone users in the UK alone.

More than a third of cell phone users are currently using shattered, destroyed, or broken
phones, based on a study about the phone repair market in the UK. In addition, in the last
three years, over half of smartphone users have damaged or totally broken their phones.

According to research conducted by Mous, the British phone accessory company, where their
co-founder, Jams Griffith, said they heard several customer storeys about how they were able
to crack the screens of their phones.

Many users of cell phones drop their phone at least once and some more than they can even
count. The reasons why the phone is dropped can differ as often as the multiple users carry it
to Repair My Phone. The resulting damage could include shattered windows, broken cases
and damaged cameras, whether your phone has fallen on concrete, grass or flooring.

Another research showed that on a night out there are a quarter of all breakages; showing just
how badly phones and alcohol seem to blend. The difficult combination of intoxication,
dancing (vigorously with a phone in a shallow pocket) or posing for friendly images also
leads to falling phones.

Taking a selfie is another leading cause of accidental phone injury. One in five smartphone
accidents is responsible for this common pastime, leading to broken screens and worse.

Another leading cause of phone damage is dropping the unit down the toilet, as you may have
guessed. The study showed that by dropping it in the loo, 10 percent of users break their
smartphone, as even the most water-resistant phones cannot withstand complete water
immersion (especially for a long period).
 Back in the days when everybody had Nokia handsets that were hard to wear, broken phones
weren't almost as prevalent. Smartphone displays are now mostly made of glass or plastic,
and are much more susceptible to impact breakage. As a consequence, taking precautions and
having your device insured is critical.

Leading causes of smartphone damages in

the U.S. 2018( in %)
80
60
40
20
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Source: https://www.statista.com/statistics/959492/us-top-common-smartphone-damage-
cause/

Screen protector glasses: Kavach of Smartphones

Source: www.grandviewresearch.com

Screen protectors are made of either plastics, such as polyethylene terephthalate (PET) or
polyurethane thermoplastic (TPU) or tempered laminated glass, identical to the original
screen of the system they are intended to protect. Plastic screen protectors cost less than glass
and are thinner and more durable (approximately 0.1 mm (0.004 in) thick, compared to 0.3 to
0.5 mm (0.012 to 0.020 in for glass). Glass can withstand scratching better than plastic at the
same price and feel more like the screen of the unit, although higher quality plastic protectors
may be better than the cheapest tempered glass versions, since glass can shatter or crack with
enough impact force. For a variety of factors, high-quality tempered glass is one of the best
screen protectors; it has good light transmission, allowing for a bright display. It's anti-
reflective and reduces glare. Often, tempered glass has the same look and feel as the screen of
your mobile phone, so you barely know that it's there.

Corning Inc.
Corning Inc. founded in 1851 is an American multinational technology company. It has 5
major business sectors: optical communications, life sciences, display technologies,
environmental technologies and speciality materials. Corning manufactures Gorilla Glass
used by many smartphone makers. Corning is well known for its earliest innovation of the
bulb-shaped glass encasement which was used for incandescent lamp of Thomas Edison.
Thomas Edison approached Corning for supplying him the glass bulbs that he needed for
bringing light into the world. To cover the fragile filaments forming the lightbulb, he needed
just the right glass; glass that was stronger and more damage-resistant than glass usually used
in windows and jars.2. The company also developed a way for mass production of the
electric bulbs when electric lights became commercially available.

Journey of Corning
In materials technology, Corning Incorporated is a leading innovator. Corning has combined
its unparalleled experience in glass science, ceramic science, and optical physics for nearly
170 years with profound manufacturing and engineering capabilities to produce category-
defining goods that transform industries and improve the lives of people.

Corning has the advantage of being synergistic and versatile and this enables them to adapt to
the changing market needs as well as providing the customers with better opportunities. At
present, Corning’s markets comprises of optical communications, display technology,
automotive emissions control, mobile consumer electronics and life sciences vessels. Corning
facilitates 5G and hyper scale data centre applications in optical communications with market leaders,
as shown by partnerships with Verizon, Intel, CenturyLink and Altice Portugal. While revenues
increased by 13 percent in the first half of 2019, they decreased by 16 percent in the second half. In
2019, the Optical Communications segment accounted for 35 percent of Corning's net segment sales.
In display technology, Corning generated entertainment experiences through display glass innovation,
including the launch of Corning Astra Glass. The Display Technologies division of Corning provides
glass substrates for high-performance displays, including organic light-emitting diodes (OLEDs) and
liquid crystal displays (LCDs), which are predominantly used in televisions, laptop computers and
desktop monitors for flat panel displays. This segment develops, manufactures and supplies high
quality glass substrates using technology expertise and a proprietary fusion manufacturing process,
which Corning invented and is the cornerstone of the Company’s technology leadership in the display
2
https://www.corning.com/in/en/innovation/culture-of-innovation/history-of-innovation-feature-article.html
glass industry. The Display Technologies segment represented 28% of Corning’s segment net sales in
2019. In automotive emissions control, accelerating GPF (Gasoline Particulate Filter) adoption
showered more than $250 million sales in 2019.the automotive emission control or the environmental
technologies segment constituted 12% of net sales in 2019. When looking at the mobile consumer
electronics segment, more than 7 billion devices in the world use its gorilla glass. This segment
constituted 14% of net sales in 2019.The life science segment includes products for cell-based
medicine and further, Valor Glass provides a new standard for drug packaging. This segment
constituted 9% of the net sales in 2019.3. Corning’s market-leading products are precision glass
for advanced displays damage-resistant cover glass for mobile devices; optical fiber,
connectivity solutions for state-of-the-art communications networks and wireless
technologies ; clean-air technologies for cars and trucks and trusted products to accelerate
drug discovery and delivery.

Corning product development

Corning Inc is engaged in developing and manufacturing many products, one among the
major product being the gorilla glass or cover glass. The company is well known and
demanded for its super quality cover glass for smartphones, tablets, notebook PCs and
smartwatches. The company have introduced and then upgraded its gorilla glass versions.
Gorilla glass 1 was introduced in 2008, Gorilla glass 2 in 2012 which was 20% thinner than
the former one. After that in 2013, Corning introduced Gorilla Glass 3 whose material was 3
times more scratch resistant than the previous one. Antimicrobial Gorilla Glass which is non-
toxic contains ionic silver in its surface was introduced in 2014. In 2014, Gorilla Glass 4 was
announced which had better damage resistance and capability to be made thinner with the
same performance as its predecessor. Gorilla Glass 5 was first used in 2016 on Samsung
Galaxy Note 7. In 2016 Gorilla Glass SR+ was first used on the Samsung Gear
S3 smartwatch. Gorilla Glass 6 was at first used on the Samsung Galaxy S10 in 2019. The
latest and the most advanced version of their gorilla glass is Corning gorilla glass Victus the
toughest gorilla glass they have made yet.
Corning Gorilla Glass Victus
Gorilla Glass Victus introduced in July 2020, was initially used on the Samsung Galaxy Note
20 in 2020. Corning Gorilla Glass is manufactured in Kentucky, South Korea and Taiwan. In
the lab tests done by Corning, Gorilla Glass Victus was able to survive from a fall from 2
meters, compared to maximum drop height of 1.6 m for Gorilla glass 6. Furthermore, the
scratch resistance of Gorilla Glass Victus is 4x better than other protective glasses.
Competition
Though Corning gorilla glass dominates the market, it faces competition from challengers
like Dragontrail and synthetic sapphire and many other competitors. Dragontrail glass is
produced by Asahi Glass Company of Japan and is used by Oneplus, Samsung, Lava,
Xiaomi, Sony etc. another one rival I the Xensation glass of Schott AG of Germany which is
new in the market and is used by Huawei. Sapphire Glass of Sapphire Glass Pvt ltd is one of
3
https://www.corning.com/2020-annual-meeting/2019-annual-report/HTML1/corning_incorporated-
ar2019_0059.htm?r5#1
the major rival which is really strong but is more suitable for scratch resistant than shatter
resistant one. Dinorex glass manufactured by Nippon electric Glass is used by umi, BQ and
Meizu. Panda King Glass of Tunghsu Group is used by Apple iPhones, which is an alkali-
aluminosilicate sheet glass. These are some of the major rivals for Corning Gorilla glass.
Challenges
The main challenges faced by Corning are changes in end demand, aggressive LCD glass
pricing, adverse foreign exchange moves, inventory levels and traction with new products
and segments. Apart from these, the company also faces issue of limited protection of
intellectual property and fast market changing.

Videos
Tests - https://www.youtube.com/embed/90niXuHoHp4
Introduction - https://www.youtube.com/watch?v=glI_sTyQnP0&feature=emb_rel_pause