The global smartphone market is poised for a modest rebound in 2024, with growth projected at 3% year-over-year according to Counterpoint Research’s latest report. This rebound is set to be fueled by the budget-economy segment ($150-$249) and the premium segment ($600-$799), signifying a shift in consumer preferences after a challenging 2023.
A key highlight of the report is the focus on emerging markets like India, countries within the Middle East and Africa (MEA) region, and Latin America. These markets are expected to play a pivotal role in the growth of the budget-economy smartphone segment, as macroeconomic conditions gradually improve. Easing inflationary pressures and stabilizing currencies mean that consumers in countries like Kenya and Nigeria will see their purchasing power recover. This trend is expected to boost demand for smartphones in the $150-$249 price range. These are phones priced locally at prices ranging between Kshs 20,000 and Kshs 35,000.
Intense competition among Chinese smartphone manufacturers like OPPO, vivo, Xiaomi, and Transsion Group is another significant factor highlighted in the report. These brands are heavily investing in emerging markets, offering compelling features at affordable prices. This competition serves to further stimulate demand for budget-friendly smartphones globally and will be a primary driver of the segment’s growth.
The premium smartphone segment is also anticipated to experience steady growth. The introduction of AI-powered smartphones and the growing fascination with foldables are likely to propel demand. Interestingly, Huawei is expected to rival Apple in the premium segment, with Apple expected to benefit from increasing iPhone demand in emerging markets. The fact that Huawei is back in the smartphone conversation is great for the industry, but unfortunately this mainly affects the Chinese market.
In the longer term, Counterpoint Research forecasts a steady but modest increase in global smartphone shipments in 2024. The market appears to have reached a saturation point, with only low single-digit year-over-year growth projections in the coming years.
