Global smartphone sales grew! Who is it owed to?

The last two years have not been kind to the smartphone industry. Economic uncertainties and other factors affected sales worldwide. Quarterly remittances hit a decade low in the third quarter of 2023. However, a recovery may be coming. According to market research firm Counterpoint, global smartphone sales grew five percent year-over-year (YoY) in October, the first YoY growth in more than two years.

Global smartphone sales grew! Who is it owed to?

Smartphone sales returned to growth in October after a two-year decline
The study of Counterpoint reveals that the global smartphone market last recorded annual growth in shipments in June 2021. The growth was the result of increased demand as the industry recovered from an unprecedented slowdown a year earlier due to the coronavirus pandemic. However, the industry suffered from component shortages in the second half of 2021 to 2022.

The economic implications of the Russia-Ukraine conflict and the US-China trade war, as well as longer replacement cycles, mean smartphone shipments were down more than 15% year-on-year in June last year. The arrival of the iPhone 14 series helped the chart recover in September 2022. However, this was not enough for positive growth. The recovery was also temporary, as a 15% drop in remittances was seen again late last year.

The market continued to see a year-over-year decline in shipments in the first nine months of 2023 as well.

Finally, after a string of 27 consecutive months of declines, Counterpoint reported growth in shipments in October of this year. The company attributed this growth to higher demand in emerging markets such as the Middle East and Africa (MEA) region. Huawei’s return to China and festive season sales in India also helped.

Since developed markets have a greater saturation of smartphones, growth is slower in these markets. Counterpoint adds that the delay in the launch of the iPhone 15 series also contributed to sales growth last month. The latest iPhones arrived a week later than the 2022 lineup, so the full effect of their sales was felt in October. The research firm expects the strong show in October to result in positive YoY growth in the fourth quarter of 2023.

While Apple launched the iPhone 15 series a week late, Samsung will launch the Galaxy S24 a few weeks before the Galaxy S23. Rumors say that the company will launch the new flagships on January 17, 2024, with sales starting on January 30.