Global smartphone shipments to edge lower in 2023: IDC

Global smartphone shipments will decline 1.1% this year to 1.2 billion units, down from the previous 2.8% growth forecast due to weak demand and macroeconomic challenges, according to a report from International Data Corporation (IDC) released earlier this month.

Real market recovery is not expected to occur until 2024, when the research firm expects 5.9% year-over-year growth. Despite low consumer demand and increasing costs, the global market will revive next year, the report said.

“The global market will return to growth in 2024 once we are past these short-term challenges as there is a significant pent-up for a refresh cycle in developed markets as well as room for smartphone penetration in emerging markets to fuel stable long-term growth,” the research firm noted. 

5G networks will grow to account for 62% of smartphones shipped worldwide this year, rising to 83% by 2027.

The foldable phone segment is expected to expand with nearly 22 million units, or a 50% increase, this year while the overall smartphone market contracts. The segment will continue to grow as costs decrease and more original equipment manufacturers (OEMs) launch foldable phones.

The smartphone average selling price (ASP), which soared from $334 in 2019 to $415 in 2022, will begin to decline this year and is expected to reach $376 by end-2027, according to the report.

Write to Jeong-Soo Hwang at hjs@hankyung.com

Jihyun Kim edited this article.