Global Smartphone Market Recovers but Faces Challenges, Projected for Moderate Growth Over the Next Five Years

Global Smartphone Market Recovers but Faces Challenges, Projected for Moderate Growth Over the Next Five YearsThe Science and Technology Innovation Board Daily reported on August 4th that Canalys' latest report indicates a continued upward trend in the global smartphone market in the second quarter of 2024. Despite the better-than-expected growth, Canalys has slightly raised its 2024 global smartphone shipment forecast to 1

Global Smartphone Market Recovers but Faces Challenges, Projected for Moderate Growth Over the Next Five Years

The Science and Technology Innovation Board Daily reported on August 4th that Canalys' latest report indicates a continued upward trend in the global smartphone market in the second quarter of 2024. Despite the better-than-expected growth, Canalys has slightly raised its 2024 global smartphone shipment forecast to 1.2 billion units, a 5% year-on-year increase, citing challenges stemming from rising costs, inventory turnover, and the business environment.

The report notes that the smartphone market, after experiencing a downturn in 2022, witnessed a strong rebound in 2023. This trend continued in the first half of 2024, with market demand picking up, particularly in mid-range device sales. However, the report also highlights the challenges facing the market.

Rising costs are a major pressure point. The persistent increase in the cost of chips, components, and other materials is putting pressure on smartphone manufacturers' profit margins. Inventory turnover has also become an issue, with some brands facing inventory build-up and needing to take measures to clear stock. Additionally, global economic uncertainty and geopolitical risks present further challenges to the market.

Looking ahead, Canalys anticipates the smartphone market to enter a relatively stable growth phase. The global smartphone shipments are expected to grow at a modest compound annual growth rate (CAGR) of 2% from 2024 to 2028, signaling a period of market stabilization.

Despite the challenges, the smartphone market remains full of potential. In the future, the widespread adoption of 5G networks, the application of artificial intelligence technologies, and the emergence of new application scenarios are all set to create new growth points for the market. Smartphone manufacturers need to continuously innovate and enhance their product competitiveness to gain an edge in the future competition.