What Display Daily thinks: There are a number of stories in recent weeks about the smartphone market, BOE failing to win over Apple on some quality issues, and now, Samsung Display restructuring for Apple and future foldables.
To put one thing into perspective, between them, Samsung and Apple produce over a third of the smartphones in the world. That’s a staggering market position for Samsung’s smartphone displays. And, if you wanted to narrow it down, you could argue that they produce nearly two thirds of the premium smartphones in the world.
Maybe Apple considers Samsung a frenemy, competing as it does with Apple on phone sales while, arguably, being the most reliable supplier of screens for iPhones. But, that doesn’t mean that the two companies don’t need to be tightly connected, and working together to safeguard that premium space. Because, coming up the ranks, making plenty of their own smartphones, and building their own display supply chains locally, are the Chinese manufacturers, companies like Xiaomi, Huawei, Vivo, and Oppo.
The roadmap for smartphones is as much about locking up your supply chain for years to come, as it is about coming up with better and more powerful displays. All we know, for now at least, is that the premium smartphone display market is going to get locked up by Samsung with LG trailing in its wake, while everyone else gets to play in emerging markets, and with emerging brands.
There’s nothing but upside for Samsung right now in adopting a strategy that focuses on microdisplays and smartphones and Apple. What it means to other product lines and form factors is anyone’s guess right now. Maybe the TV market was the best barometer of the health of the display industry, but that’s yesterday’s news. Go small is the mantra now.
Smartphones Rebounding Worldwide
After several years of declining smartphone shipments brought on by the pandemic and global instability, the worldwide smartphone market is showing signs of recovery, according to new forecasts from IDC.
IDC predicts that global smartphone shipments will see a YoY increase of 7.3% in the fourth quarter of 2023, marking a reversal from the modest declines seen in the third quarter. This uptick is attributed to improved inventory levels and optimism from manufacturers.
The market is expected to continue rebounding into 2024, with projected shipment growth of 3.8% for the full year. However, IDC cautions that long-term growth will remain muted, with a five-year compound annual growth rate of just 1.4% forecast through 2027.
In total, 1.16 billion smartphone units are expected to ship globally in 2023, a 3.5% decline from 2022. Though still a contraction, this updated projection is more optimistic than IDC’s previous forecast of a 4.7% drop for the year.
Popal cites renewed consumer enthusiasm in China driven by excitement over Huawei’s resurgence as one factor energizing the global smartphone market. This momentum is expected to have positive spillover effects for the broader Android ecosystem over time.
The premium smartphone segment continues to be a bright spot, with average selling prices set to increase 5.5% year-over-year globally in 2023. iOS has shown resilience amidst economic uncertainty, achieving record market share of 19.6% this year, while the Android operating system retains dominant 81.3% market share.
5G adoption is another area of growth. Although developed markets are reaching saturation, IDC expects emerging market 5G device adoption to power double-digit increases in 2023 and 2024. By 2027, 5G smartphones are forecast to account for 83% of all shipments globally.
While hardly booming, the tempered optimism from IDC suggests the worldwide smartphone industry is stabilizing after a very turbulent period. Continued recovery is expected in 2023 and beyond, even if the days of massive shipment growth are likely in the rearview mirror.
