Smartphone Shipments Surge Thanks to 5G and iPhone Sales Growth. The smartphone market is experiencing a revival, evident in the robust fourth-quarter shipments, marking a turnaround from the overall decline witnessed in 2023. According to the latest data from IDC, the performance of iPhones outshines other devices, and the widespread adoption of 5G technology appears to be a driving force behind this surge in sales.
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Global smartphone shipments are expected to surge by 7.3% in the fourth quarter compared to the same period the previous year. Overall, smartphone shipments in 2023 are projected to decline by only 3.5%, with a total of 1.16 billion devices. This outlook is far more favorable than the 4.7% decline forecasted earlier. IDC anticipates this market recovery to continue into 2024 with an estimated growth rate of 3.4%.
Nabila Popal, Research Director of Mobility and Consumer Device Trackers at IDC, reports that Apple has shown remarkable resilience during this macro-crisis. Users are gravitating towards premium devices, benefiting Apple, while Android devices have played a significant role in the lower-end market segment. The majority of low-end devices are being sold in emerging markets and China, regions hit hardest by the crisis.
The average price of smartphones is on the rise, expected to increase by 5.5% to $438 by 2023, continuing a four-year trend of rising prices due to the increased popularity of premium phones across various markets. However, a decline in average prices is anticipated in the years ahead, potentially reaching $396 by 2027, still higher than previous expectations.
In terms of the most popular smartphones this year, iPhones have outperformed others despite challenging market conditions, achieving a slight growth of 0.6%. Their market share has reached an all-time high of 19.6%. In contrast, Android devices experienced a decline of 4.4%. Looking ahead, Android devices are projected to grow faster than iOS devices, with an expected market share of 81.3% by the end of the reporting period.
The tech market’s recovery is progressing at varying rates across different geographical regions. The resurgence is particularly pronounced in China, where consumers are increasingly purchasing gadgets and showing enthusiasm for Huawei’s resurgence, which is expected to bolster the Android market in the long term. Huawei’s flagship device, the Mate 60 Pro ($1,200), has seen considerable success in China, with 1.6 million units sold within the first six weeks of its launch in late August.
The growth of the 5G market is a notable factor amidst less impressive overall smartphone sales this year. IDC points out that 5G is a significant driver, with its increasing prevalence in developed countries poised to fuel industry growth in the coming years. Global 5G smartphone shipments are projected to rise by 11% in 2023 and an additional 20% in 2024. This translates to a notable increase in the percentage of 5G smartphones in the market, from 61% in 2023 to an impressive 83% by 2027.
