By Mounis Hawass
Monday, September 4, 2023 03:00 AM
These are not the best times for the market Smart phones Globally, phone shipments have declined steadily over the past few quarters, while a new report by ITC predicts a further decline in global smartphone shipments in 2023. Global smartphone shipments are expected to decline by 4.7% year-on-year to 1.15% in 2023. %. One billion units, the lowest volume in a decade, according to IDC.
But according to IDC estimates, iOS shipments — of the various iPhone models — are expected to grow 1.1% in 2023, reaching an all-time high of 19.9%. Perhaps one of the main reasons for this expected growth is the iOS operating system. More resilient…meeting macro challenges from Android expected to decline 6.0% this year.
While all regions are expected to decline, China, Asia/Pacific (excluding Japan and China) and Latin America – areas of focus for most Android players – will contribute the most to the decline with shipments falling 3.6 percent and 4.4 percent, respectively. The ITC report indicates 6.2 percent respectively.
Growth rates in the United States and Western Europe are expected to slow to 3.8 percent and 6.1 percent, respectively, and while 2023 may paint an even bleaker picture, IDC expects the market to recover in 2024 with annual growth of 4.5 percent. The five-year CAGR, growth rate is 1.7 percent, through low single digits for the remainder of the forecast period.
“While the market will undoubtedly return to growth, prolonged renewal cycles are dragging down long-term growth rates, preventing the overall market from reaching pre-Covid levels,” said Nabila Bhopal, director of research at IDC.
In such an environment, it is crucial for sellers to increase their value and focus on channel incentives and promotions to attract customers and bring them back home by offering flexible financing options. The silver lining is that as consumers hold onto their devices longer, they are willing to pay more, which should help average selling prices rise for the fourth year in a row in 2023.