Charted: The Rise of Mobile Device Subscriptions Worldwide
Charting The Rise of Mobile Device Subscriptions Worldwide
There were approximately 8.6 billion mobile device subscriptions worldwide as of 2021, more than there are people on the planet.
Yet, while mobile phones, tablets, and other devices have become extremely common across the globe, access still varies greatly from country to country.
Using data from Our World in Data, this chart by Pablo Alvarez tracks the rise of mobile phones across the globe, showing the discrepancies in mobile phone subscriptions in select countries.
The Evolution of the Mobile Market
Before diving into the present-day divide, it’s worth quickly explaining how the overall cell phone market and mobile devices in general have evolved over the last three decades.
Below is a summary of the history of the mobile market since its onset in the early 90s.
The 90s and Early 2000s: The Beginning
The first mobile device hit the market in 1983, with Motorola’s launch of the DynaTAC 8000X. This clunky analog phone cost nearly $4,000 and needed to be recharged after 30 minutes of use.
By the early 1990s, innovation in the industry had somewhat taken off, with various manufacturers like Nokia and Sony starting to launch their own devices.
While this gave consumers more product options to choose from, the technology was still fairly new, and mobile adoption was relatively low compared to today’s figures.
2007 and Onwards: Apple Opens Up the Market
Though many companies introduced mobile phones, and a few launched early tablet devices like the PalmPilot and the Nokia 770, it was Apple’s foray into the market that shook things up.
The iPhone’s launch in 2007, and the iPad’s debut in 2010, ushered in a new era of mobile devices. Their touch-screen design was revolutionary at the time, and they were also exceptionally more functional through the App Store, since users could download hundreds of different mobile applications and games quickly.
This is when the rise of mobile really started to pick up across the globe. In 2007, there were nearly 3.4 billion mobile device subscriptions worldwide or about 50% of the global population.
Present Day: Mobile Devices Are Common, But Not Ubiquitous
In many parts of the world, millions of people rely on their mobile phones and tablets every day for work, social life, or simple day-to-day activities like figuring out directions or deciding what to make for dinner.
Yet, while overall mobile subscriptions have surpassed the global population, adoption hasn’t been equally spread across the globe.
Here’s a look at mobile device subscriptions per 100 people, in 12 different regions:
|Country||Mobile Subscriptions Per 100 People (2020)|
|🇭🇰 Hong Kong||291|
|🇿🇦 South Africa||161|
|🇺🇸 United States||106|
|🇸🇸 South Sudan||12|
As the table above shows, some regions have a lot more mobile phone subscriptions than people, while other places are lagging behind.
In regions with a surplus, people likely have multiple devices and SIM-enabled gadgets like smartwatches and connected cars. This explains how in Macao, mobile subscriptions are more than 300% higher than the country’s population.
On the flip side, in South Sudan, there are just 12 mobile phone subscriptions for every 100 people in the country. Poverty is widespread across the country, which helps explain its relatively low number of mobile subscriptions. According to the World Bank, only 7.2% of the South Sudan’s population has access to electricity.
This article was published as a part of Visual Capitalist's Creator Program, which features data-driven visuals from some of our favorite Creators around the world.
Timeline: The Shocking Collapse of Silicon Valley Bank
Silicon Valley Bank was shuttered by regulators becoming the largest bank to fail since the height of the Financial Crisis. What happened?
Timeline: The Shocking Collapse of Silicon Valley Bank
Just days ago, Silicon Valley Bank (SVB) was still viewed as a highly-respected player in the tech space, counting thousands of U.S. venture capital-backed startups as its customers.
But fast forward to the end of last week, and SVB was shuttered by regulators after a panic-induced bank run.
So, how exactly did this happen? We dig in below.
Road to a Bank Run
SVB and its customers generally thrived during the low interest rate era, but as rates rose, SVB found itself more exposed to risk than a typical bank. Even so, at the end of 2022, the bank’s balance sheet showed no cause for alarm.
As well, the bank was viewed positively in a number of places. Most Wall Street analyst ratings were overwhelmingly positive on the bank’s stock, and Forbes had just added the bank to its Financial All-Stars list.
Outward signs of trouble emerged on Wednesday, March 8th, when SVB surprised investors with news that the bank needed to raise more than $2 billion to shore up its balance sheet.
The reaction from prominent venture capitalists was not positive, with Coatue Management, Union Square Ventures, and Peter Thiel’s Founders Fund moving to limit exposure to the 40-year-old bank. The influence of these firms is believed to have added fuel to the fire, and a bank run ensued.
Also influencing decision making was the fact that SVB had the highest percentage of uninsured domestic deposits of all big banks. These totaled nearly $152 billion, or about 97% of all deposits.
By the end of the day, customers had tried to withdraw $42 billion in deposits.
What Triggered the SVB Collapse?
While the collapse of SVB took place over the course of 44 hours, its roots trace back to the early pandemic years.
In 2021, U.S. venture capital-backed companies raised a record $330 billion—double the amount seen in 2020. At the time, interest rates were at rock-bottom levels to help buoy the economy.
Matt Levine sums up the situation well: “When interest rates are low everywhere, a dollar in 20 years is about as good as a dollar today, so a startup whose business model is “we will lose money for a decade building artificial intelligence, and then rake in lots of money in the far future” sounds pretty good. When interest rates are higher, a dollar today is better than a dollar tomorrow, so investors want cash flows. When interest rates were low for a long time, and suddenly become high, all the money that was rushing to your customers is suddenly cut off.”
|Year||U.S. Venture Capital Activity||Annual % Change|
Why is this important? During this time, SVB received billions of dollars from these venture-backed clients. In one year alone, their deposits increased 100%. They took these funds and invested them in longer-term bonds. As a result, this created a dangerous trap as the company expected rates would remain low.
During this time, SVB invested in bonds at the top of the market. As interest rates rose higher and bond prices declined, SVB started taking major losses on their long-term bond holdings.
Losses Fueling a Liquidity Crunch
When SVB reported its fourth quarter results in early 2023, Moody’s Investor Service, a credit rating agency took notice. In early March, it said that SVB was at high risk for a downgrade due to its significant unrealized losses.
In response, SVB looked to sell $2 billion of its investments at a loss to help boost liquidity for its struggling balance sheet. Soon, more hedge funds and venture investors realized SVB could be on thin ice. Depositors withdrew funds in droves, spurring a liquidity squeeze and prompting California regulators and the FDIC to step in and shut down the bank.
What Happens Now?
While much of SVB’s activity was focused on the tech sector, the bank’s shocking collapse has rattled a financial sector that is already on edge.
The four biggest U.S. banks lost a combined $52 billion the day before the SVB collapse. On Friday, other banking stocks saw double-digit drops, including Signature Bank (-23%), First Republic (-15%), and Silvergate Capital (-11%).
|Name||Stock Price Change, March 10 2023||Unrealized Losses / Tangible Equity|
|First Republic Bank||-15%||-29%|
|Fifth Third Bancorp||-4%||-38%|
|Bank of America||-1%||-54%|
Source: Morningstar Direct. *Represents March 9 data, trading halted on March 10.
When the dust settles, it’s hard to predict the ripple effects that will emerge from this dramatic event. For investors, the Secretary of the Treasury Janet Yellen announced confidence in the banking system remaining resilient, noting that regulators have the proper tools in response to the issue.
But others have seen trouble brewing as far back as 2020 (or earlier) when commercial banking assets were skyrocketing and banks were buying bonds when rates were low.
The whole sector is in crisis, and the banks and investors that support these assets are going to have to figure out what to do.-Christopher Whalen, The Institutional Risk Analyst
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