Due to the global economic downturn this year, worldwide smartphone shipments are expected to hit their lowest level in 10 years.
On the 17th (local time), market research firm Counterpoint Research reported that smartphone shipments are projected to reach 1.147 billion units this year, impacted by reduced demand originating from China. This represents a sharp decline of about 6% compared to the previous year, marking the lowest level in a decade since 2013 (1.049 billion units).
Counterpoint Research analyzed that ongoing macroeconomic uncertainties such as inflation and interest rate hikes have slowed the absorption of smartphone inventory in the two largest markets, China and the United States. In particular, the rapid slowdown of the Chinese economy, which had driven smartphone growth in recent years, is seen as a factor contributing to the worsening demand and sharp drop in shipments.
Counterpoint Research explained that the smartphone demand growth in the Asian market was sluggish as China’s reopening effect did not materialize as expected, and in North America, replacement demand for new models did not occur as much as anticipated.
However, Apple is expected to boost replacement demand in the second half of the year with the release of its new iPhone series. Apple typically unveils new iPhone models between September and October, increasing its market share in the fourth quarter (October to December), only to lose the lead again to Samsung Electronics in the first quarter of the following year.
Jeff Fieldhack, Research Director for the North American region at Counterpoint Research, predicted, "As the market cools, nearly all carriers in North America recorded the lowest smartphone replacement demand ever this year, but with the launch of the new iPhone series (iPhone 15), they will aggressively compete to attract customers."
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