Global smartphone shipments are expected to drop in 2023. According to the forecast of International Data Corporation (IDC), the market will shrink by 1.1 percent this year. This is said to be due to weak demand and a slower-than-expected market recovery. The global quarterly mobile phone tracker estimates that smartphone shipments will reach 1.19 billion units this year.

IDC reported that a real recovery in smartphone shipments is not expected until 2024, with a five-year CAGR of 2.6 percent. Of the 1.19 billion shipped this year, 967.7 million are expected to be Android devices, with the rest iOS devices. The report also shows that 5G is growing and is expected to account for 62 percent of global deployments by 2023. This number will increase to 83 percent in 2027. Foldable phones are also said to be a growing segment and are estimated to reach 22 million units. this year, despite the decline in the market, it increased by 50 percent. This segment is expected to continue to grow as costs come down and more feature phones are released. The average selling price of smartphones increased from $334 in 2019 to $415 in 2022, according to IDC, but is expected to start falling in 2023 and reach $376.

IDC noted Given rising costs and continued consumer demand challenges, OEMs are very cautious about 2023. Even though good news has finally come out of China with the recent resumption of business, there is still a lot of uncertainty and a lack of confidence, leading to a cautious outlook.”

The global smartphone market is expected to return to growth in 2024 after overcoming these short-term challenges. There is said to be a significant delayed upgrade cycle in developed markets and opportunities for smartphone penetration in developing countries.