Smartphone shipments next year will remain flat as macroeconomic headwinds and consumer weakness continue to pressure the sector, report said.
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“Persistent inflation, expectations of future interest rate hikes, souring corporate earnings, China’s stalled economy, the protracted Ukraine-Russia war, political turmoil in Europe, and a sweeping new set of export controls on China from the US, all contributes to the downward adjustment of the smartphone market forecast,” Peter Richardson, vice president at Counterpoint Research, said in the blog.
Research firm Counterpoint has cut the latest growth forecast of 6% to just 2% in 2023.
The smartphone segment is expected to continue underperforming through the first half of next year and only start to grow from the September-ending quarter, Counterpoint said in a blog last week.
Smartphone shipments for 2022 lowered to 1.24 billion units, the firm noted.
However, OEMs focusing on the premium segment, which is more resilient than the low- to mid-end, are better positioned to deal with these issues, with deep technical expertise and diversified businesses capable of weathering the storm, Richardson added.
Counterpoint expects the global market for 5G devices to show healthy growth from 2024, with operators luring consumers to switch to the new technology by providing attractive incentives.
It also expects the new form factors like foldables to become more prominent along with the 5G segment and drive the growth of premium smartphones.