Global smartphone market en route for a bounceback in 2024: Report

Shipments for global smartphone shipments are likely to bounce back 3 per cent this year with inflation easing, thereby helping in demand recovery for upcoming markets.

Additionally, generative AI integration is drawing buyers to invest in premium devices, Counterpoint Research said in its report on March 28.

This comes after shipments globally for smartphones declined last year to over 4 per cent, according to data shared earlier by the research firm, on the back of economic uncertainties.
India, the Middle East and Africa are the emerging markets which are likely to drive major growth for the smartphone market, specifically in the budget-economy segment.

The budget segment, which is anticipated to grow 11 per cent in 2024 after shrinking in 2023, will also see rising demand in the Caribbean and Latin American regions.

The segment, which entails phones priced between $150 and $249, will benefit from easing inflation in regions such as Africa and the local currencies stabilising, according to Counterpoint. 

Elevated competition between Chinese companies in the likes of Oppo, Vivo and Xiaomi 1810.HK, paired with a demand recovery for IT devices also helped the segment grow. 

Phones in the premium segment, priced between $600 and $799 are also likely to grow 17 per cent. 

The introduction of the coveted GenAI technology and the rise in popularity for foldable phones will further boost demand for this segment, as per the report. 

The premium market will be led by Apple and its Chinese rival Huawei, as they emerge victorious in the race for smartphone share, the report stated.

Steady iPhone demand, especially in upcoming markets is en route to benefit Apple, while Huawei is anticipated to maintain a robust footprint in China, more so after the release of its 5G Kirin chipset, as per the report. 

iPhone sales in China saw a 24 per cent decline due to competition from Huawei in the first six weeks of 2024, Counterpoint had earlier gauged.

In another development, Apple is in conversations for embedding Google's Gemini AI engine into the iPhone.

(With Reuters Inputs)