The global smartphone market is poised for a resurgence in 2024, with shipments expected to rise by 3 percent. This optimistic forecast comes as easing inflation boosts demand recovery in emerging markets and the allure of generative AI drives consumers towards premium devices, according to a recent report by Counterpoint Research.
After experiencing a decline of over 4 percent in 2023, the smartphone industry is seeing signs of recovery. Consumers in regions like India, the Middle East, and Africa are leading the charge, particularly in the budget-economy segment where phones priced between $150 and $249 are gaining popularity. This segment is projected to grow by 11 percent in 2024, reversing its earlier shrinkage. Increased demand in the Caribbean and Latin American regions further supports this growth.
Factors contributing to the budget segment's rebound include easing inflation in Africa and the stabilization of local currencies. Additionally, heightened competition among Chinese manufacturers such as Oppo, Vivo, and Xiaomi, coupled with a rebound in demand for IT devices, is driving growth in this segment.
On the premium side, smartphones priced between $600 and $799 are expected to see a significant 17 percent increase in shipments. The integration of cutting-edge generative AI technology and the rising popularity of foldable phones are key factors fueling demand. Industry leaders like Apple and Huawei are anticipated to capture substantial market shares in the premium segment.
Apple is set to benefit from steady demand for iPhones, especially in emerging markets. Meanwhile, Huawei is expected to maintain a strong presence in the Chinese mainland with the launch of its new Kirin chipset. Despite facing fierce competition, Huawei's innovations are helping it retain a competitive edge.
Interestingly, competition from Huawei has impacted iPhone sales in China, with a 24 percent decline reported in the first six weeks of 2024. Nevertheless, the overall outlook for the global smartphone market remains positive as manufacturers continue to innovate and cater to diverse consumer needs.
Reference(s):
cgtn.com
