Saturday, September 30, 2023
HomeNewsThe smartphone industry receives bad news

The smartphone industry receives bad news

# **The smartphone industry receives bad news** **The recession trend of the smartphone market will not stop in 2023 with a predicted decline of 3.2%.** According to the Worldwide Quarterly report IDC’s latest Mobile Phone Tracker, poor economic forecast and continued rising inflation rate could reduce smartphone shipments in 2023 by 3.2%. This was even lower than the market research firm predicted a 1.1% drop in February. IDC estimates that total global smartphone shipments will reach 1.17 billion devices by 2023. “Our discussions with our supply partners and OEMs have come to the same conclusion that recovery is in progress. The recovery will continue, however, the last two quarters of the year are still a negative period,” said Nabila Popal, research director of research group IDC Mobile and Consumer Device Trackers. However, IDC still expects the smartphone market to begin to recover in 2024 with a year-over-year growth of 6%. Meanwhile, user demand recovered slower than expected in all regions, including China. “If 2022 is a year of inventory crunch, 2023 will be a year for vigilance. Every business prepares inventory ready to adapt to the wave of recovery because they do not want to stay in this stagnation stage for too long. This means that brands can face the risk of failure or get results that match their bets,” said research director Nabila Popal. According to* Cnet*, one of the potential device lines that will continue to grow is the folding phone. “We will still see many completely new folding designs on the market with great advancements in technology. However, the timing is not favorable,” said Ryan Reith, vice president of research group IDC Mobile and Consumer Device Trackers. According to experts, companies are focusing on cutting costs, but the results of these changes cannot come overnight. Now should be the time to invest in customer needs. “Marketing, sales promotion strategies and promotions should be the top things that companies need to focus on,” affirmed Ryan Reith. Earlier, a report by Canalys showed that global smartphone shipments fell 13% in the first quarter of 2023 compared to the same period last year, amid slow economic growth, inflation and buying demand. weak. According to preliminary data from IDC, shipments in most regions recorded double-digit declines. Canalys analyst Sanyam Chaurasia said the results were in line with industry-wide expectations as consumers are prioritizing travel and entertainment over smartphone purchases. “The smartphone industry is going through a phase of liquidation and inventory adjustments. Instead of ramping up production in pursuit of temporary market share gains, companies are taking a more conservative approach… IDC expects the market to move into positive territory in the third quarter and grow healthy double digits by the end of 2023,” said research director Nabila Popal.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments