During the COVID pandemic, the demand for smartphones grew exponentially resulting in record-breaking sales for phone makers. As the world opened up from the situation, consumer behaviour entered a conservative approach and the demand for phones started to slow down.
Research firm Canalys reports that the global smartphone market declined by 12% in 2022. The latest analysis shows that device sales are now climbing back to an upward curve. Despite a small YoY decline in 2023, the volume of smartphone shipments is now expected to grow by 4% in 2024.
Canalys Says Global Smartphone Sales Will Increase From Next Year
Canalys has released a new report highlighting the situation of smartphone sales worldwide. Over 1.19 billion devices were sold in the year 2022, which was a sharp decline compared to 1.35 billion shipments in 2021.
The report mentions that the European and North American markets started to show corrections after a rapid growth in 2021. These regions witnessed an 11% fall in device sales in 2023 as compared to last year.
Emerging markets like Asia Pacific and China also saw a small correction with a 6% decline in sales. However, the demand for smartphones in these markets is now rising and is expected to return with positive growth in the upcoming months.
Canalys says that Europe, Asia, and the Middle East will contribute the highest to the growth of smartphone sales next year. However, the market in China may not grow as significantly as in other regions.
The number of smartphone sales in 2024 is expected to be around 1.17 billion shipments. It suggests a 4% YoY increase as compared to 1.12 billion shipments this year. The markets are also expected to keep growing at a steady pace post-2024.
Canalys also mentions that the average selling price of smartphones in 2023 is around $440 (approx Rs 36,600). It is a significant increase from $332 (approx Rs 27,600) from 2017. This also reflects that the profit earned by phone makers has also improved over the last five years.
As companies generate more revenue per unit sold, it allows OEMs to implement more features in devices. In the upcoming months, more smartphones are expected to feature on-device AI capabilities.
Canalys further added that the upcoming growth in smartphone sales will be fueled by emerging markets like India and Southeast Asia. Around one-third of the global phone sales are expected from the Asia Pacific region.
Companies like Honor, Transsion (Tecno and Infinix), and Xiaomi are expected to aggressively expand outside of China. The product supply chain is confident in growth in developing markets, says the report.
However, developed markets like the US and Europe may not witness growth in the premium segment of smartphones. These regions appear to have reached a saturation point as most users have already switched to premium devices during the growth boom in the pandemic. The next significant wave of growth for such regions is now expected in 2025.
