According to initial data from Counterpoint Research’s most recent Global Smartphone Shipment Forecast, there is a projected 6% decline in smartphone shipments for 2023, bringing the total to 1.15 billion units. This represents the lowest shipment figure in the past decade.
Challenges in Asian Markets and Consumer Hesitancy in North America Impact Global Smartphone Industry
The primary factor contributing to this decline is the challenging situation in Asia, particularly China, where economic recovery has stalled due to various obstacles. Additionally, the broader Asian region is witnessing substantial declines, particularly in emerging markets.
North America is also playing a significant role in hindering global recovery. Despite positive economic indicators such as job market strength and decreasing inflation, consumers in North America remain hesitant to upgrade their smartphones. Consequently, the replacement rates for both the United States and the global market have reached record highs.
Jeff Fieldhack, Research Director for North America, notes that there has been a disconnect between economic conditions and consumer smartphone purchases, resulting in exceptionally low upgrade rates across all carriers this year. However, the launch of the iPhone 15 in Q4 presents an opportunity for carriers to attract high-value customers, especially given the availability of attractive promotions. Apple, in particular, stands to benefit, considering its substantial iPhone 12 user base.
Apple’s Strong Position in Premium Market Signals Potential for Global Leadership in 2023 Smartphone Shipments
In China, Apple is positioned well due to its strength in the premium smartphone segment, which continues to gain market share. Globally, the growth of premium and ultra-premium segments benefits vendors like Apple, who have a significant presence in these higher-priced segments.
The year 2023 could mark a turning point for Apple, as it is well-positioned in the resilient premium market and has a strong presence in the United States. This favorable position could potentially propel Apple to become the top global smartphone vendor in terms of annual shipments, a position it has never held before. Fieldhack suggests that it’s a very close competition, with only a few days’ worth of sales separating Apple from the top spot. However, the outcome may depend on Apple’s ability to avoid production issues, similar to those experienced in the previous year.
Counterpoint Technology Market Research is a worldwide research company with expertise in the technology, media, and telecommunications (TMT) sector. The organization serves prominent technology and financial firms by delivering monthly reports, tailored projects, and thorough examinations of mobile and technology markets. The company’s primary analysts are highly experienced professionals in the high-tech field.
