Smartphone sales to remain low in 2023, but improve in 2024
Samsung is moving in the right direction, focusing on foldable phones like the Galaxy Z Flip 4 and the Galaxy Z Fold 4, as smartphone shipments are poised to remain low in 2023. According to IDC’s recent research (via CNET), around 1.17 billion smartphones will be shipped globally this year, a 3.2% decline compared to last year. The reason behind this decline is the current economic conditions globally.
Next year, though, smartphone shipments are expected to increase by 6% year-over-year. Consumer demand for smartphones is recovering much slower than what was expected earlier. Thankfully for Samsung, the share of foldable smartphone shipments is expected to rise, improving the South Korean company’s smartphone ASP (Average Selling Price) and profit margins. Samsung is expected to launch two new foldable phones—Galaxy Z Flip 5 and Galaxy Z Fold 5—in late July 2023.
Google has also launched its first foldable phone this year. Other brands, including Honor, Huawei, Motorola, OPPO, Tecno, Vivo, and Xiaomi, have launched more foldable phones. OnePlus will launch its first foldable phone this year, while Apple will wait a few more years before launching its foldable iPhone.
Nabila Popal, research director with IDC’s Mobility and Consumer Device Trackers, said, “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.”
By 2027, smartphone shipments are expected to reach nearly 1.4 billion units. The smartphone ASP (Average Selling Price) will fall from $421 in 2023 to $377 in 2027. Hence, companies are investing in their ecosystem products and offerings. For example, Samsung has continued to offer other Galaxy ecosystem products like Galaxy Buds, Galaxy Books, Galaxy Watches, and SmartThings-compatible smart home devices and appliances.
