Global smartphone sales have experienced a resurgence, breaking a 27-month streak of consecutive year-on-year declines, as reported by Counterpoint Research.
The data reveals a 5% year-on-year growth in sell-through transactions (retail sales volumes) for October 2023, marking the first positive change since June 2021.
Recovery in Emerging Markets
Counterpoint Research highlights that the resurgence in global smartphone sales is primarily driven by the recovery in emerging markets, showcasing significant growth in the Middle East and Africa (MEA) region.
Additionally, the return of Huawei in the Chinese market and the commencement of the festive season in India have contributed to the positive trend. In contrast, developed markets with higher smartphone saturation have experienced a slower recovery.
"Global smartphone sales have been under stress for the last two years due to factors including component shortages, inventory build-up and lengthening of replacement cycles. These issues have been compounded by an uncertain macroeconomic environment," the research organizations said in a statement.
The report emphasizes the role of Huawei in the rebound, noting that the Chinese tech giant Huawei achieved the fastest growth among smartphone manufacturers in China during the third quarter.
This growth was attributed to the release of Huawei's Mate 60 Pro smartphone in September, generating considerable consumer interest, particularly due to its advanced chip.
Furthermore, October 2023 witnessed the highest monthly smartphone sales since January 2022, indicating a substantial rebound in the market. The delayed launch of Apple's iPhone 15 series in late September played a role in this recovery, as the full impact of the new iPhone sales was realized in October.
Market Challenges
Counterpoint Research acknowledges that the global smartphone market has faced challenges over the past two years, including component shortages, inventory accumulation, and extended replacement cycles. These factors, compounded by economic uncertainties, have contributed to the prolonged decline in smartphone sales.
With the positive growth observed in October, Counterpoint Research anticipates a year-on-year market expansion in the fourth quarter of 2023, setting the stage for a gradual recovery in the upcoming quarters.
The report suggests that the smartphone market is navigating a path toward revival after facing prolonged challenges.
It's noteworthy that this shift in the trajectory of smartphone sales comes against the backdrop of a complex landscape characterized by global supply chain issues and changing consumer behavior.
As the industry navigates these challenges, the resurgence observed in October may offer a glimmer of hope for manufacturers and stakeholders.
"The growth in October was led by emerging markets with a continuous recovery in the Middle East and Africa (MEA) region, Huawei's comeback in China and festive season onset in India, which punched far above its weight to account for the largest share of monthly global gains. Developed markets with relatively higher smartphone saturation have been slower to recover," said Counterpoint Research.
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