The Global Smartphone Market Has Taken A Sharp Downturn
The smartphone market has taken a significant downturn, with Stocklytics.com reporting that revenue has declined by a staggering $36 billion during the last two years. Both economic and industry-related hurdles are to blame, with Stocklytic’s financial analyst Edith Reads saying, “The decline in 2023 marked the lowest full-year volume in a decade, primarily driven by macroeconomic challenges and elevated inventory early in the year. While the global smartphone market remains challenged, momentum is moving quickly toward recovery.”
Premium Smartphone Revenue Increases Despite Overall Sales Decline
Despite these challenges, including an overarching decline in smartphone sales, the sales of premium smartphones costing $600+ has risen over this same period of time. So much so, that these phones for the first time captures over 20% of the market in terms of shipment. This trend aligns closely with Apple’s strong performance in 2023 since some of its devices are priced above $600.
The shift in customer behavior suggests that some are willing to pay a premium price for high-quality devices with advanced features and specifications. Additionally, the refurbished phone market has also risen by 16% year-on-year. This indicates that consumers are more willing to buy a used device at a lower rate than a brand-new device.
Apple Claims Top Spot, Outshining Samsung in 2023 Sales
Apple and Samsung have been in a battle for supremacy in the smartphone industry for the last decade. While Apple is known for setting trends with its iPhone series, Samsung offers a range of devices tailored to market segments. This intense rivalry has led to back-and-forth competition for market dominance, with both companies striving to outshine each other in terms of design, features, and technological advancements.
In 2023, Apple surpassed Samsung in smartphone sales for the time since 2010. The iPhone series overtook the Samsung Galaxy as the best-selling smartphone globally, marking a shift in the industry’s competitive landscape. The iPhone accounted for a significant portion of the smartphone market last year, with approximately 235 million units shipped.