The International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker reports a positive trend in mobile phone sales, showing improvement in fourth-quarter shipments despite an overall decline in 2023. Notably, iPhones outperformed other devices, and the anticipated adoption of 5G technology is expected to further boost sales.
Projections indicate a 7.3% increase in global smartphone shipments in the fourth quarter compared to the same period the previous year. While smartphone shipments for the entire year are expected to decline by 3.5% to 1.16 billion devices in 2023, this forecast is more optimistic than the earlier prediction of a 4.7% drop. IDC predicts a market recovery with 3.4% growth in 2024.
Apple has shown resilience during the macro crisis, attributed to its affluent consumer base and strategic initiatives like trade-ins and financing for premium products. In contrast, Android players, largely operating in the low-end segments, faced challenges due to economic hardships, especially in emerging markets and China.
The average price of smartphones is forecasted to rise by 5.5% to $438 in 2023, continuing a four-year trend of increasing prices driven by the popularity of more expensive premium phones. Although the price hike is expected to slow down, a reduction to $396 by 2027 is anticipated, still higher than previous forecasts.
In terms of smartphone systems, iOS is performing slightly better than others, experiencing a 0.6% growth despite challenging market conditions, reaching its highest market share ever at 19.6% in 2023. Conversely, Android phones are expected to see a 4.4% decline. Looking ahead, Android is projected to grow faster than iOS, reaching approximately 81.3% market share by the end of the forecast period, according to IDC.
While Android maintains its status as the most popular global smartphone operating system, the iPhone continues to have a stronger hold over the US market, according to Steven Athwal, the managing director at The Big Phone Store. He notes that when a new iPhone is released, it is often compared to flagship Android phones, highlighting the iPhone's influential position in the market.
Despite variations in the pace of recovery in different regions, China is experiencing a notable uptick in tech market activity, with increased gadget purchases attributed to excitement about Huawei's comeback. This surge in interest is expected to benefit the entire Android market in the long run.