Smartphone market down, maybe it has hit rock bottom

The smartphone market had a challenging third quarter in 2023, marking its worst performance in a decade. Finding adequate words to describe the sector’s downturn remains a struggle.

The only glimmer of hope is that this prolonged slump eventually paves the way for a swift recovery. Analysts and manufacturers have expressed optimism for 2024, even though anticipated growth has been revised downward several times. In late August, IDC projected a 4.5% increase in smartphone shipments, which is 1.5 percentage points less than previous estimates.

Examining the data:

The third-quarter data revealed feeble signs within the smartphone market. This quarter was indeed the worst Q3 in the past ten years, witnessing an 8% YoY decline (according to Counterpoint Research data). However, it also displayed a modest 2% uptick compared to the previous quarter. The principal reason behind this ninth consecutive decline is the perpetually weak consumer demand.

Samsung leads the market in terms of shipped units and commands a 20% market share. Nevertheless, it registered a significant YoY decrease of 13%, even with the introduction of the Z Fold 5 and Z Flip 5 foldable models during the examined quarter. Apple takes second place with a 16% market share and saw a 9% decline compared to the same period in the previous year, despite launching innovative products such as the iPhone 15, 15 Plus, 15 Pro, and 15 Pro Max.