There will be a decline in global smartphone shipments by 3.2% in 2023, with an estimated total of 1.17 billion units shipped, according to IDC. This is a larger decline than what was previously projected in February, when it was predicted to be only a 1.1% decline.
People in the supply chain, retail channels, and major smartphone manufacturers all suggest that the market recovery will take longer than expected and that the second half of the year will likely be weak. Consumer demand for smartphones is recovering more slowly than anticipated in all global regions, including China.
In 2022, the industry had too much inventory, but in 2023, the sentiment is one of caution. Companies are wary of holding too much inventory in case the market doesn’t recover quickly, but they also don’t want to be left with insufficient stock when the market does bounce back. This delicate balance creates an opportunity for companies willing to take a risk to potentially gain a larger market share.
While inventory levels have improved somewhat, suppliers remain cautious. He mentions that despite the current market challenges, more foldable phone designs are appearing on the market, showcasing technological advancements in the industry. However, given the current economic conditions, the timing of these launches might not be ideal.