Global smartphone shipments are predicted to experience a significant decline in 2023, reaching a 6% drop to approximately 1.15 billion units, marking the lowest point in a decade. Asia, particularly China, faces economic headwinds that have hindered anticipated growth. Preliminary data from Counterpoint Research reveals that regional challenges have led to intensifying declines across emerging markets, contributing to record-high smartphone replacement rates.
North America is also impacting global recovery, with a disappointing first half of 2023 setting the stage for double-digit full-year declines. Despite positive job market trends and decreasing inflation, consumer hesitation to upgrade their devices has pushed replacement rates to unprecedented levels in the US and globally.
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Nonetheless, there is a noticeable trend of growth in premium and ultra-premium smartphone segments, which benefits manufacturers like Apple with a strong presence in higher market segments. This trend could potentially propel Apple to the top spot globally in terms of annual shipments for the first time. According to Jeff Fieldhack, North America's Research Director, Apple's proximity to the number one spot is remarkable, with only a few days' worth of sales separating it from the current leader.
The upcoming launch of the iPhone 15 in Q4 holds significant importance. This launch window is seen as an opportunity for carriers to attract high-value customers. With an extensive installed base from the iPhone 12 series, aggressive promotional activities are expected, placing Apple in a favourable position.
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In China, Apple is benefiting from the growing share of the premium smartphone segment. The company's strong position in this segment is expected to contribute to its overall performance.
As the smartphone industry faces challenges in 2023, particularly in terms of declining shipments, Apple's resilience and dominance in premium markets are positioning the company for potential growth and a competitive edge on a global scale.
Inputs from IANS
