Shillong, August 17: Global smartphone shipments are projected to decline by 6 percent, reaching 1.15 billion units in 2023, making it the weakest year in a decade, according to a recent report.
As per IANS, the challenges mainly stem from Asia, where economic recovery, initially anticipated for China, has been hindered by headwinds, and the broader region is witnessing escalating drops in emerging markets. Counterpoint Research’s preliminary data indicates that regional macro risks are driving smartphone replacement rates to historic highs.
North America remains a significant obstacle to global rebound, as its lackluster performance in the first half of the year positions it for a double-digit decline throughout 2023. Despite favorable job market conditions and decreasing inflation, consumers are cautious about upgrading their smartphones, causing replacement rates in the US and globally to soar.
Nevertheless, a remarkable trend is the surge in demand for premium and ultra-premium devices, particularly benefiting companies like Apple, which possess substantial portfolios in the higher market segments. This premium growth trend could potentially propel Apple to secure the top spot in global annual shipments for the first time ever, marking a new era for the company.
Analysts are closely observing the fourth quarter due to the anticipated launch of the “iPhone 15,” which presents an opportunity for carriers to attract high-value customers. With a significant base of iPhone 12 users up for grabs, aggressive promotions are expected, positioning Apple favorably.
In China, Apple’s strong position within the premium market segment continues to expand its market share, signaling positive prospects for the company. The possibility of Apple claiming the top global spot is underscored by its competitiveness in premium markets and a strong showing in the US.