In 2007, Steve Jobs unveiled the first-generation iPhone, marking the entry of the entire mobile phone industry into the era of smartphones. Later, Apple introduced the App Store, ushering in the mobile internet era for smartphones.

From 2007 to the present, it has been 17 years. During this period, some companies have faltered, while others have risen, forming the current stable landscape of smartphones. The rankings have remained largely unchanged for many years.

It can be said that the overall mobile phone market will basically see little reshuffling in the future, and there will be minimal changes in rankings and sales volumes.

Moreover, the entire mobile phone industry has entered an era of low innovation and high profits. Don't argue that if there's no innovation, how can there be high profits? But the fact is indeed so.

Regarding innovation, in recent years, there have been some gimmicks like foldable screens, AI phones, and improved photography. However, these so-called innovations are mostly cosmetic and routine upgrades, hardly comparable to the groundbreaking innovations of earlier years.

Remember how exciting phone launches used to be? Each event showcased numerous new features, comparisons with competitors, and specs to attract buyers. But in recent years, people are increasingly reluctant to upgrade their phones because they find minimal differences each year—just incremental improvements and color changes, nothing surprising.

Compare for yourself. Have Apple or other brands made significant changes in recent years? Even the designs remain largely unchanged. The only differences are chip upgrades and better cameras. Other features? Pretty much the same.

Despite the lack of innovation, prices haven't dropped; they've actually increased. Especially in the last five years, both Apple and domestic brands have increased their prices by at least 25% compared to 2018.

According to tracked data, the average price of mobile phones in the domestic market has risen from 2,956 yuan in 2020 to 3,726 yuan in 2024.

Many may disagree with price hikes, but from 2020 to 2024, many consumer goods have actually decreased in price, such as household appliances and even cars. Even real estate prices in many areas have fallen back to pre-2020 levels. Yet, mobile phone prices continue to rise—is this reasonable?

Looking at the financials of mobile phone manufacturers, you'll find that their gross margins and profits are gradually increasing.

With limited innovation and fully developed functionalities, chip advancements slowing down according to Moore's Law, and a stable market landscape, manufacturers find little benefit in further investment. It's more profitable to reduce input or divert funds to other ventures.

With reduced innovation, investment, and increased prices, isn't the mobile phone industry entering an era of low innovation and high profits? So, the mobile phone industry has become a lucrative business. It's just hard for new players to emerge now. After years of fierce competition, established players can finally enjoy the fruits of their labor in peace.