The smartphone scenario in 2023 is not positive. According to the International Data Corporation (IDC), theGlobal shipments will decrease by 1.1% this year.
This is due to low demand and slower market recovery. According to the world’s quarterly tracker of cell phones, the forecast is that shipments of smartphones this year will be 1.19 billion units. IDC reports that a real recovery in smartphone shipments is not expected until 2024 and a five-year CAGR is estimated at 2.6%.
Of the total 1.19 billion shipments this year, 967.7 million are expected to be Android devices, while the rest are expected to be iOS. The report also reveals that 5G is growing and is projected to account for 62% of shipments worldwide by 2023. That number will increase to 83% in 2027.
Foldable phones are also a rising segment and are estimated to hit 22 million units this year, up 50% despite the market decline. The segment is expected to continue to grow as costs come down and more brands launch foldable phones. According to IDC, the average selling price of smartphones has grown from US$334 in 2019 to US$415 in 2022, but will start to fall in 2023 and should reach US$376.
The perspective going forward is one of caution, according to IDC, which argues that even the reopening of China has not been able to undermine the climate of uncertainty and distrust, after all there are rising costs and a continuous challenge of trying to meet a demand from the consumer public.
​The global smartphone market is expected to resume growth in 2024 once these short-term challenges are over. There is said to be a significant pent-up update cycle in developed markets and room for smartphone penetration in emerging countries.
