The global smartphone market is set for a rebound in 2024, with Counterpoint Research forecasting a 3% growth fueled by the integration of artificial intelligence (AI) technology.
After a decline of over 4% in shipments last year due to economic uncertainties, easing inflation and the allure of generative AI is expected to drive demand, particularly in emerging markets like India, the Middle East, and Africa (via Reuters).
Smartphone Market Set for Significant Growth
According to Counterpoint, the budget segment, comprising phones priced between $150 and $249, is set to experience an 11% growth this year, thanks to stabilized local currencies and easing inflation in regions such as Africa.
Furthermore, increased competition among Chinese companies like Oppo, Vivo, and Xiaomi is expected to contribute to this growth, along with a recovery in demand for IT devices.
Meanwhile, the premium segment, featuring phones priced between $600 and $799, is projected to witness a significant 17% growth. This surge is attributed to the introduction of highly anticipated generative AI technology and the rising popularity of foldable devices.
Notably, Apple and Huawei are expected to emerge as key players in this premium market, with steady demand for iPhones in emerging markets and Huawei gaining a strong presence in China.
(Photo : Dan Kitwood/Getty Images)
LONDON, ENGLAND - JULY 26: Iphone 13's on display during a press preview of Apple's new Knightsbridge store on July 26, 2022 in London, England. Apple has 520 stores across the globe with 40 of them in the UK.
Booming Chinese Smartphone Industry
In the Chinese smartphone industry, which has seen exponential growth in recent years, three brands - Xiaomi, OPPO, and Transsion - made it to the top five globally.
According to reports, in the initial two months of 2024, China shipped mechanical and electrical products worth 2.22 trillion yuan (about $308.41 billion), up 11.8 percent year on year and accounting for 59.1 percent of total exports. More than 123.7 million mobile phones were exported during this period.
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Chinese media tells us that local brands are increasingly launching into overseas markets and gaining recognition worldwide, capitalizing on the development of mobile internet and the robust development of the smartphone industry in China.
The significance of overseas markets for Chinese smartphone brands is stressed by their focused strategies in different regions. Xiaomi targets Central and East Africa, Europe, and Latin America, while OPPO and Vivo concentrate on the Asia-Pacific region. Honor has rapidly gained traction in Europe, Latin America, and the Middle East, ranking among the top five in sales within two years of re-entering overseas markets.
Moreover, Chinese smartphone brands have been steadily increasing their market share in the high-end segment, with prices exceeding $600, reaching 27.4% in 2023. This growth is attributed to their high-cost performance, designs tailored to overseas markets, and significant investments in AI research and development.
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