The Chinese government is banning the use of iPhones at several ministries due to the risk they pose to national security.
Smartphone Shipments on Track for Another Low in 2023: Can iPhone 15 Help?
17.08.2023 - 15:53 / pcmag.com / Can
It's shaping up to be another dismal year for the smartphone market, with shipments on track to be the lowest over the past decade, according to Counterpoint Research.
The research firm today projected that vendors will only ship 1.15 billion smartphone units by the end of 2023. That represents a decline from not only last year, but also from 2014 when the market shipped 1.3 billion units.
This comes as more US consumers are holding on to their existing phones, which has already caused shipments for the first half of 2023 to result in double-digit declines.
“Despite strength in the jobs market and inflation falling, consumers are hesitant to upgrade their devices, pushing replacement rates for the US and globally to record highs,” Counterpoint says.
The other problem is the economic headwinds in China, the world’s largest market for smartphones. Chinese consumers' reluctance to upgrade is now a major factor in the ongoing smartphone slump, according to Counterpoint.
The numbers also suggest that pricey foldable phones aren't exactly flying off the shelves. Even so, there is a chance smartphone shipments could rebound later this year. The research firm points to the imminent launch of Apple’s iPhone 15, which could arrive with a USB-C port for the first time and motivate consumers to upgrade.
“And with that big iPhone 12 installed base up for grabs promos are going to be aggressive, leaving Apple in a good spot,” Counterpoint adds.
Other research firms have also reported on the downward trend facing the smartphone market. In IDC’s case, 2022 also saw smartphone shipments reach their lowest in a decade due to weak consumer demand and inflation.
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