Global Smartphone Market to Rebound in 2024

According to a report by Counterpoint Research, cited by Reuters, the global smartphone market is poised to bounce back in 2024 with a projected 3% increase in shipments. Factors such as easing inflation and the integration of generative AI are expected to fuel demand, particularly in emerging markets like India, the Middle East, and Africa. These regions, along with the Caribbean and Latin America, are anticipated to drive growth in the budget segment, which is forecasted to expand by 11% this year after a contraction in 2023.

Counterpoint highlights that the budget segment, comprising phones priced between $150 and $249, will benefit from improving economic conditions in regions such as Africa and stabilization of local currencies. Additionally, heightened competition among Chinese smartphone manufacturers like Oppo, Vivo, and Xiaomi, coupled with a rebound in IT device demand, will further boost this segment.

In the premium segment ($600 to $799), a robust growth of 17% is expected, fueled by the introduction of genAI technology and the rising popularity of foldable phones. The report also suggests steady demand for iPhones, particularly in emerging markets, while Huawei is anticipated to maintain its stronghold in China, bolstered by the release of its 5G Kirin chipset.

However, competition from Huawei has reportedly led to a 24% decline in iPhone sales in China during the initial six weeks of 2024, as estimated by Counterpoint. Additionally, there are media reports indicating that Apple is in discussions to incorporate Google’s Gemini AI engine into the iPhone, although details on this development remain scarce.