Shipments of smartphones will drop 1.1 percent in 2023 to 1.19 billion units, according to the latest IDC report.
Smartphones market will grow 5.9 percent in 2024, followed by low single-digit growth leading to a five-year compound annual growth rate (CAGR) of 2.6 percent. Smartphones market will grow 2.2 percent in 2027 to 1,371 million units.
Android Smartphones market will shrink 1.2 percent to 967.7 million units in 2023. In 2027, Android Smartphones market will grow 2.4 percent to 1,123.3 million units.
Apple iOS phones will drop 0.5 percent to 225 million units in 2023. Apple iOS phones will grow 1.3 percent to 247.7 million units in 2027.
5G will account for 62 percent of smartphones shipped worldwide in 2023, rising to 83 percent by 2027.
“With increasing costs and ongoing challenges in consumer demand, OEMs are quite cautious about 2023. While there is finally some good news coming out of China with the recent reopening, there is still a lot of uncertainty and lack of trust, which results in a cautious outlook,” said Nabila Popal research director with IDC’s Mobility and Consumer Device Trackers.
Foldable phones segment is expected to grow to nearly 22 million units this year – a 50 percent increase while the overall market contracts. This segment will grow as costs decrease and more OEMs launch this form factor.
Smartphone average selling price (ASP) that saw rapid growth over the last few years (from $334 in 2019 to $415 in 2022) will begin to decline starting in 2023 and is expected to reach $376 by end of the forecast period.
“Most regions will face double-digit declines in the first half of 2023, make a turn into positive territory in the third quarter, and boost into double-digit growth in the last quarter of the year,” said Anthony Scarsella, research director with IDC’s Mobility and Consumer Device Trackers.