International Smartphone Shipments Anticipated to Decline 1.1% in 2023 as Restoration Is Pushed Ahead into 2024 Amidst Weak Demand, Based on IDC Tracker

NEEDHAM, Mass., March 1, 2022 –Worldwide Knowledge Company (IDC) has revised its worldwide smartphone forecast on account of a slower market restoration than beforehand anticipated. Based on the newest Worldwide Quarterly Cell Cellphone Tracker forecast, shipments of smartphones will decline 1.1% in 2023 to 1.19 billion items, down from the two.8% progress within the prior forecast as market continues to undergo from weak demand and ongoing macroeconomic challenges. Actual market restoration isn’t anticipated to happen till 2024, when IDC expects 5.9% year-over-year progress adopted by low single-digit progress resulting in a five-year compound annual progress charge (CAGR) of two.6%.

“With rising prices and ongoing challenges in client demand, OEMs are fairly cautious about 2023. Whereas there may be lastly some excellent news popping out of China with the latest reopening, there may be nonetheless a number of uncertainty and lack of belief, which ends up in a cautious outlook,” mentioned Nabila Popal analysis director with IDC’s Mobility and Client Machine Trackers. “Nevertheless, we stay satisfied the worldwide market will return to progress in 2024 as soon as we’re previous these short-term challenges as there’s a important pent up refresh cycle in developed markets in addition to room for smartphone penetration in rising markets to gasoline secure long-term progress.”

5G continues to develop and can account for 62% of smartphones shipped worldwide in 2023, rising to 83% by 2027. Market momentum additionally continues to construct round foldable telephones because the phase is anticipated to develop to almost 22 million items this 12 months – a 50% improve whereas the general market contracts. This phase will proceed to develop as prices lower and extra OEMs launch this way issue, as now we have seen this week with a number of Android foldable launches at Cell World Congress. Lastly, smartphone common promoting worth (ASP) that noticed fast progress over the previous couple of years (from $334 in 2019 to $415 in 2022) will start to say no beginning in 2023 and is anticipated to succeed in $376 by finish of the forecast interval.

“2023 is ready to be a 12 months of two halves with the primary half piggybacking off the downhill slide from the fourth quarter of 2022,” mentioned Anthony Scarsella, analysis director with IDC’s Mobility and Client Machine Trackers. “Most areas will face double-digit declines within the first half of the 12 months, make a flip into optimistic territory within the third quarter, after which enhance into double-digit progress within the final quarter of the 12 months. We anticipate the inflow of premium flagships that sometimes launch within the third and fourth quarters will maintain the total 12 months decline from being worse.”

About IDC Trackers

IDC Tracker merchandise present correct and well timed market dimension, vendor share, and forecasts for a whole bunch of expertise markets from greater than 100 international locations across the globe. Utilizing proprietary instruments and analysis processes, IDC’s Trackers are up to date on a semiannual, quarterly, and month-to-month foundation. Tracker outcomes are delivered to shoppers in user-friendly Excel deliverables and on-line question instruments.

For extra details about IDC’s Worldwide Quarterly Cell Cellphone Tracker, please contact Jackie Kliem at 508-988-7984 and [email protected].

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About IDC

Worldwide Knowledge Company (IDC) is the premier international supplier of market intelligence, advisory companies, and occasions for the data expertise, telecommunications, and client expertise markets. With greater than 1,300 analysts worldwide, IDC affords international, regional, and native experience on expertise, IT benchmarking and sourcing, and business alternatives and tendencies in over 110 international locations. IDC’s evaluation and perception helps IT professionals, enterprise executives, and the funding group to make fact-based expertise choices and to attain their key enterprise targets. Based in 1964, IDC is an entirely owned subsidiary of Worldwide Knowledge Group (IDG), the world’s main tech media, information, and advertising companies firm. To be taught extra about IDC, please go to www.idc.com. Observe IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Weblog for business information and insights.

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