The Worldwide Quarterly Mobile Phone Tracker's most recent projection predicts a 9.1% loss in smartphone sales in 2022, a decrease of 2.6 percentage points from the previous prediction. IDC predicts that in 2022, the number of smartphones shipped will reach 1.24 billion devices.
IDC did lower its 2023 smartphone projection by about 70 million units, given the continuing macroeconomic climate and its overall influence on demand, even if a rebound of 2.8% is still expected in 2023.
According to Ryan Reith, Group Vice President of IDC's Worldwide Mobility and Consumer Device Group, "We believe the global smartphone market will remain challenging through the first half of 2023, with hopes that recovery will improve around the middle of next year and growth across most regions in the second half."
The smartphone sector and related consumer technology categories are concerned about rising costs, but Reith says, "We expect much of this reduced demand will be pushed ahead and will boost global growth in late 2023 and beyond."
In many struggling emerging nations, a device renewal cycle is still developing, whereas developed markets have boosted promotional activity, improved trade-in offers, and expanded financing options to combat growing costs. Despite the economic slowdown, this has helped the upper end of the market flourish.
Over half of devices shipped globally in 2022 will use 5G, and by 2026, that percentage will have increased to 80%. Additionally, the market for foldable phones is continuing to gain traction.
The smartphone sector and related consumer technology categories are concerned about rising costs, but Reith says, "We expect much of this reduced demand will be pushed ahead and will boost global growth in late 2023 and beyond."
In many struggling emerging nations, a device renewal cycle is still developing, whereas developed markets have boosted promotional activity, improved trade-in offers, and expanded financing options to combat growing costs. Despite the economic slowdown, this has helped the upper end of the market flourish.
Over half of devices shipped globally in 2022 will use 5G, and by 2026, that percentage will have increased to 80%. Additionally, the market for foldable phones is continuing to gain traction.
IDC estimates that although this market share will only be approximately 1% to 2% in 2022, there will still be 15 to 16 million smartphones in this category. This number will increase as costs come down and more OEMs support the shift in form factors.
Research Director for IDC's Worldwide Mobility and Consumer Device Trackers Anthony Scarsella continues, "Average selling prices (ASPs) are increasing despite the market slowdown as consumers choose premium devices that can last three to four years and refresh rates are slowing in both developed and emerging markets."
"Average selling prices for smartphones are predicted to increase for the third year in a row, rising to $413 from $388 in 2021, a 6.4% increase.
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