The Rise of Smartphone Demand in 2024: What to Expect

Introduction

In a report from Counterpoint Research, it has been predicted that demand for smartphones is set to increase modestly in 2024 after experiencing a decline in 2023. This growth is expected to be driven by sales in both the lower-priced and higher-priced segments of the market, with emerging markets playing a significant role in boosting overall shipments.

Key Findings

Counterpoint Research forecasts a 3% increase in global smartphone shipments in 2024, reaching a total of 1.2 billion units. This growth is expected to be fueled by demand in emerging markets, particularly in regions such as India, the Middle East and Africa, and Latin America. The study highlights two key segments driving this growth: the budget-economy segment and the premium segment.

Budget-Economy Segment

The budget-economy segment, which includes devices priced between $150 and $249, is expected to see an 11% increase in shipments in 2024. This rebound comes after a challenging year in 2023, with increased demand from emerging markets driving the growth. Countries like India, MEA, and CALA are expected to be key contributors to the rise in shipments in this segment.

Premium Segment

On the other hand, the premium segment, which includes devices priced between $600 and $799, is predicted to experience a 17% increase in shipments. This growth is attributed to the excitement surrounding AI phones and foldable devices. Companies like Apple and Huawei are expected to lead this growth, with Apple benefiting from strong iPhone demand in markets like India and MEA, while Huawei maintains its dominance in China.

Long-Term Outlook

Looking ahead, Counterpoint Research anticipates that year-over-year smartphone shipments will continue to increase by single-digit percentages over the long term. This steady growth trajectory suggests that the smartphone market remains resilient and continues to evolve to meet the changing needs and preferences of consumers worldwide.

Conclusion

In conclusion, the forecasted rise in smartphone demand in 2024 presents opportunities for both manufacturers and consumers. With emerging markets driving growth in both the budget-economy and premium segments, companies will need to adapt their strategies to capitalize on these trends. As technology continues to advance and consumer preferences evolve, the smartphone market is poised for continued growth and innovation in the years to come.

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