Weak Consumer Demand Continues to Delay a Recovery for the Smartphone Market, According to IDC Tracker
NEEDHAM, Mass.–(BUSINESS WIRE)–#Apple–According to a new forecast from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, global shipments of smartphones will decline 3.2% in 2023, totaling 1.17 billion units for the year. This is a downward revision from the 1.1% decline forecast in February. The revision is being driven by several factors, including a weaker economic outlook and ongoing inflation. Despite the lower forecast for 2023, IDC still expects a market recovery in 2024 with 6.0% year-over-year growth.
“Our conversations with channels, supply chain partners, and major OEMs all point to recovery being pushed further out and a weaker second half of the year,” said Nabila Popal research director with IDC’s Mobility and Consumer Device Trackers. “Consumer demand is recovering much slower than expected in all regions, including China. If 2022 was a year of excess inventory, 2023 is a year of caution. While everyone wants to have inventory ready to ride the wave of the inevitable recovery, no one wants to be stuck holding it too long. This also means the brands that take the risk – at the right time – can potentially reap great rewards of share gain.”
“Channel inventory remains elevated in many regions and while things have improved, the confidence from suppliers is still low,” said Ryan Reith, group vice president, Mobility and Consumer Device Trackers at IDC. “We continue to see more foldable designs in the market, which is a great technological step forward for the industry, but the timing is unfortunate given the headwinds. As many companies continue to focus on reducing budgets the aftermath of those decisions can be long. Now is a time to invest in customers and what they need and want. Marketing support, sales incentives, and promotional support should be at the top of that list.”
A graphic illustrating IDC’s forecast for worldwide smartphone shipments and average selling price (ASP) by air interface generation (3G, 4G, and 5G) is available by viewing this press release on IDC.com.
About IDC Trackers
IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC’s Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.
For more information about IDC’s Worldwide Quarterly Mobile Phone Tracker, please contact Jackie Kliem at 508-988-7984 and jkliem@idc.com.
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About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world’s leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
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Contacts
Nabila Popal
npopal@idc.com
+1 508-872-8200
Ryan Reith
rreith@idc.com
+1 508-935-4301
Anthony Scarsella
ascarsella@idc.com
+1 508-935-4712
Michael Shirer
press@idc.com
+1 508-935-4200