The global smartphone market is in the midst of a slump, with shipments falling 8% year-over-year in the third quarter of 2023, the lowest level in a decade, according to market research firm Counterpoint. (via Reuters)
The slump is being driven by a number of factors, including subdued demand in developed markets. Consumers in developed markets are holding onto their phones longer and are less likely to upgrade to new models. This is likely due to a number of factors, including the high cost of smartphones, the lack of significant innovation in recent years, and the economic uncertainty caused by the COVID-19 pandemic.
Another reason could be the rise of China’s smartphones market, China is the world’s largest smartphone market, but it is also becoming increasingly competitive. Chinese smartphone brands like Xiaomi, Oppo, and Vivo have been gaining market share in recent years by offering high-quality smartphones at affordable prices. This has put pressure on traditional smartphone brands like Samsung and Apple.
In addition, the global economy is slowing down, and this is impacting consumer spending on smartphones. Consumers are more likely to save their money or spend it on other items, such as food and housing.
Despite the slump, there are some bright spots in the smartphone market. For example, the emerging markets are still growing. Smartphone shipments in the Middle East and Africa grew year-over-year in the third quarter.
Counterpoint is hopeful that the smartphone market could snap its more than two-year run of year-on-year declines in the fourth quarter. The firm cited the iPhone 15 lineup, which went on sale in September, as a factor that could help revive growth in developed markets.
Other factors that could support the market in the fourth quarter include the festive season in India, the 11.11 sale event in China, and end-of-year promotions across regions.