Jakarta, CNBC Indonesia – Global smartphone shipments this year are at their worst in a decade. According to a report from Counterpoint Research, this is because the market was dragged down by the trade war between the United States (US) and China.
Counterpoint Research predicts smartphone shipments in 2023 will fall 6% YoY to 1.15 billion devices.
“Asia is one of the main hurdles to positive growth, as headwinds halt the economic turnaround anticipated for China earlier in the year, and the wider region sees intensifying downturns in emerging markets,” Counterpoint said in its report, cited Friday (18 /8/2023).
Measured by expected demand, shipments are indeed not equivalent to sales and represent the number of devices that smartphone vendors send to retailers.
China’s economy has faltered this year and has not lived up to expectations of a quick recovery, while consumers remain cautious about spending.
China’s HP purchases, which used to average 450 million devices per year at peak, have shrunk to 270 million per year.
“This has contributed to being the main reason behind the decline in global smartphone sales,” Karn Chauhan, senior analyst at Counterpoint Research told CNBC International.
Meanwhile, North America did not experience a global recovery. In the first half of the year alone North America’s cell phone shipments were disappointing, sending the region into a full-year double-digit decline, said a Counterpoint report.
“Despite the strength in the job market and falling inflation, consumers are hesitant to upgrade their devices, pushing replacement rates for the US and globally to record highs,” the research firm said.
On the one hand, Apple is the biggest player in smartphones this year in terms of smartphone shipments. Because iPhone sales in the high-end class remain stable.
The market for premium phones with higher priced devices remains resilient, despite the decline in overall smartphone shipments.
Apple is gearing up to launch its next flagship smartphone iPhone 15 in September. It can make the company’s strong position in the market until the end of the year.
China’s HP is Bleeding, America is Even in Power