Global smartphone shipments are projected to grow by 3% in 2024, signaling a rebound after a period of decline, according to a recent report by Counterpoint Research.
The anticipated growth is attributed to easing inflation, which is expected to boost consumer demand in emerging markets, and the integration of generative artificial intelligence (AI) that is attracting buyers to premium devices.
In 2023, global smartphone shipments declined by over 4% as consumers curtailed spending amid economic uncertainties. However, the landscape is set to change as emerging markets such as India, the Middle East, and Africa become key drivers of growth, particularly in the budget-economy segment.
“We expect significant growth in the budget segment, with an 11% increase in shipments in 2024 after a contraction in 2023,” stated the report. This segment, comprising phones priced between $150 and $249, is poised to benefit from stabilizing local currencies and easing inflation, especially in regions like Africa, the Caribbean, and Latin America.
The surge in demand is also fueled by intensified competition among Chinese manufacturers such as OPPO, vivo, and Xiaomi, along with a recovery in demand for IT devices.
The premium smartphone segment, encompassing devices priced between $600 and $799, is expected to see a 17% growth. The report highlights that the introduction of generative AI technologies and the growing popularity of foldable phones are key factors stimulating demand in this segment.
Apple and Huawei are anticipated to emerge as leaders in the premium market. Steady demand for iPhones in emerging markets is set to benefit Apple, while Huawei is expected to maintain a strong presence in China, particularly following the release of its new Kirin chipset.
However, Huawei’s resurgence has increased competition in the Chinese market. Counterpoint Research estimated that Huawei’s advancements led to a 24% decline in iPhone sales in China during the first six weeks of 2024.
The global smartphone market’s expected rebound reflects a combination of economic recovery in emerging markets and technological innovations that are reigniting consumer interest.
Reference(s):
cgtn.com
