The global smartphone market is facing its biggest setback in nearly a decade, with sales expected to decline sharply in 2023. Apple, one of the world’s leading smartphone manufacturers, is also facing challenges, with its growth expected to be hindered by its underwhelming performance in China. (via. Counterpoint)
Global smartphone shipments are expected to decline 5% in 2023 to reach 1.2 billion units. This is the lowest level in almost a decade. The decline is being blamed on a number of factors, including the global economic slowdown, the war in Ukraine, and rising inflation.
Due to this, Apple is expected to see its share of the global smartphone market decline slightly in 2024. This is due to a number of factors, including the company’s underperformance in China and intensifying competition in the premium smartphone market. The iPhone 15 Pro and iPhone 15 Pro Max are expected to account for 65% of total sales for the iPhone 15 lineup in Q4 2023.
On the other hand, India is expected to become Apple’s new growth focus in 2024. The company’s India shipments are predicted to grow 23% YoY in 2024. This is due to a number of factors, including India’s growing middle class and rising disposable incomes.
India will become a major player in the global smartphone market in the coming years. The country’s large and growing population, rising disposable incomes, and increasing smartphone penetration rates make it an attractive market for both domestic and international smartphone manufacturers.
Apple has been investing heavily in India in recent years, and the company is expected to continue to do so in the coming years. The company’s primary manufacturing partner, Foxconn, has announced a $1.5 billion investment in India, and Apple is also expected to expand its manufacturing footprint in the country.
India’s growing importance in the smartphone market is also being driven by the government’s initiatives to promote domestic manufacturing. The government has launched a number of schemes to encourage smartphone manufacturers to set up their factories in India. These schemes include tax breaks, subsidies, and preferential access to the Indian market.
The Indian government’s initiatives are paying off. A number of smartphone manufacturers have already set up their factories in the country, and more are expected to do so in the coming years. This is expected to create thousands of new jobs and boost the country’s economy.
Looking at the competition, Huawei is expected to continue to grow in 2024, driven by its newly launched Mate 60 5G series and older P-series 4G devices. The company is also expected to benefit from the easing of US sanctions.
The decline in global smartphone shipments is a sign of the times. The smartphone market is maturing, and consumers are holding on to their phones for longer. However, there are still some signs of hope for the future. The growth of emerging markets, such as India, Middle East and Africa (MEA), and the continued innovation will help to drive the market forward.
