Global smartphone Shipments are predicted to increase by three per cent this year, driven by a rising demand in emerging markets due to lower inflation. Additionally, the inclusion of generative AI in premium devices is attracting buyers, as per a report by Counterpoint Research on Thursday.
According to earlier data from the research firm, global shipments dropped by over four per cent last year as consumers spent less in an uncertain economy.
Emerging markets such as India, the Middle East, and Africa are expected to drive growth in the smartphone market. This applies particularly to the budget-economy segment of the smartphone market.The budget segment, which is expected to grow by 11 per cent in 2024 after shrinking in 2023, is also projected to see increased demand in the Caribbean and Latin American regions.
Counterpoint notes that this segment, which includes phones priced between US$150 and US$249, will benefit from lower inflation in regions such as Africa and stable local currencies.
The growth in this segment is also attributed to the increased competition among Chinese companies like Oppo, Vivo, and Xiaomi, as well as a recovery in demand for IT devices.
The premium segment, consisting of phones priced between US$600 and US$799, is anticipated to grow by 17 per cent due to the exciting genAI technology and the popularity of foldable phones, according to the report.
The report also suggests that Apple and Chinese rival Huawei are likely to be successful in the premium market.
Apple is expected to benefit from steady demand for iPhones in emerging markets, while Huawei is projected to maintain its strong presence in China, especially with the release of its 5G Kirin chipset.
There were estimates from Counterpoint earlier indicating a 24 per cent decline in iPhone sales in China for the first six weeks of 2024, partly due to competition from Huawei.
Additionally, there were reports in March about Apple potentially integrating Google’s Gemini AI engine into the iPhone.
The report indicates a three per cent increase in global smartphone shipments this year due to a boost in demand in emerging markets caused by lower inflation.
