The latest industry report from Counterpoint Research forecasts a strong rebound in the global smartphone market this year.
According to Counterpoint, smartphone shipments worldwide should rise 3% this year as declining inflation, demand recovery, and artificial intelligence (A.I.) features attract buyers.
Worldwide shipments of all smartphones declined more than 4% in 2023, one of the worst years on record, as consumers held off spending on discretionary items amid high inflation and rising interest rates.
Counterpoint says that emerging markets such as India, the Middle East and Africa will be major growth drivers for the smartphone market, especially in the low-end budget segment that is expected to grow 11% in 2024.
The budget segment consists of smartphones priced between $150 U.S. and $249 U.S.
However, the premium segment of smartphones priced between $600 U.S. and $799 U.S. is expected to grow 17% this year.
The introduction of A.I. technology and the popularity of foldable devices should spur demand in coming months, according to the Counterpoint report.
Counterpoint said that Apple (AAPL) and China’s Huawei are likely to emerge as winners in the premium smartphone market this year.
Growing demand for iPhones in emerging markets will benefit Apple, while Huawei is expected to retain its grip on the Chinese market.
Media reports say that Apple is in talks to build Google's Gemini A.I. engine into its iPhone, a move that could increase demand for the devices.
Apple could use the boost. The company’s stock has declined 7% on the year to $173.31 U.S. per share and is currently one of the worst performers in the benchmark S&P 500 index.
