Weak Consumer Demand Continues to Delay a Recovery for the Smartphone Market
June 2, 2023 | IDCEstimated reading time: 1 minute
According to a new forecast from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, global shipments of smartphones will decline 3.2% in 2023, totaling 1.17 billion units for the year. This is a downward revision from the 1.1% decline forecast in February. The revision is being driven by several factors, including a weaker economic outlook and ongoing inflation. Despite the lower forecast for 2023, IDC still expects a market recovery in 2024 with 6.0% year-over-year growth.
"Our conversations with channels, supply chain partners, and major OEMs all point to recovery being pushed further out and a weaker second half of the year," said Nabila Popal research director with IDC's Mobility and Consumer Device Trackers. "Consumer demand is recovering much slower than expected in all regions, including China. If 2022 was a year of excess inventory, 2023 is a year of caution. While everyone wants to have inventory ready to ride the wave of the inevitable recovery, no one wants to be stuck holding it too long. This also means the brands that take the risk – at the right time – can potentially reap great rewards of share gain."
"Channel inventory remains elevated in many regions and while things have improved, the confidence from suppliers is still low," said Ryan Reith, group vice president, Mobility and Consumer Device Trackers at IDC. "We continue to see more foldable designs in the market, which is a great technological step forward for the industry, but the timing is unfortunate given the headwinds. As many companies continue to focus on reducing budgets the aftermath of those decisions can be long. Now is a time to invest in customers and what they need and want. Marketing support, sales incentives, and promotional support should be at the top of that list."
Suggested Items
Gartner Forecasts Worldwide IT Spending to Grow 8% in 2024
04/17/2024 | Gartner, Inc.Worldwide IT spending is expected to total $5.06 trillion in 2024, an increase of 8% from 2023, according to the latest forecast by Gartner, Inc. This is an increase from the previous quarter’s forecast of 6.8% growth and puts worldwide IT spending on track to surpass $8 trillion well before the end of the decade.
SCHWEIZER Announces Preliminary Group Figures for 2023 Financial Year
03/27/2024 | Schweizer Electronic AGThe preliminary and unaudited results of the SCHWEIZER Group confirm the major and successfully completed turnaround in 2023. Sales rose to a record of EUR 139.4 million, exceeding expectations with an increase of 6.4 percent.
IDC Forecasts Artificial Intelligence PCs to Account for Nearly 60% of All PC Shipments by 2027
02/08/2024 | IDCA new forecast from International Data Corporation (IDC) shows shipments of artificial intelligence (AI) PCs – personal computers with specific system-on-a-chip (SoC) capabilities designed to run generative AI tasks locally – growing from nearly 50 million units in 2024 to more than 167 million in 2027.
Power Management IC Market Size Worth USD 147.87 Billion in 2032
01/26/2024 | Globe NewswireThe global power management Integrated Circuit (IC) market size was USD 33.20 Billion in 2022 and is expected to register a revenue CAGR of 16.2% during the forecast period.
Worldwide Market for Used Smartphones Is Forecast to Surpass 430 Million Units with a Market Value of $109.7 Billion in 2027
01/24/2024 | IDCInternational Data Corporation (IDC) estimates worldwide shipments of used smartphones, including officially refurbished and used smartphones, will reach 309.4 million units in 2023.