July 19, 2024

The Future of the Smartphone Market: A Recovery on the Horizon

2 min read

In a world where smartphones have become an integral part of our lives, it’s no surprise that the smartphone market is constantly evolving. With new models and features being released every year, it can be difficult to keep up with the latest trends. However, according to a recent report by Counterpoint Technology Market Research, the future of the smartphone market looks promising.

A Decline in Revenue and Operating Profits

During the second quarter, the smartphone market experienced a decline in both revenue and operating profits. This can be attributed to a number of factors, including a decrease in iPhone demand and the absence of Samsung’s ultra-premium S or Z-series launches. Additionally, the changing shipment-mix, particularly the decrease in Apple’s shipment share, further contributed to the decline in operating profits.

The Rise of Premiumization

Although the average selling price (ASP) growth remained stagnant during this period, the report suggests that the trend of premiumization is likely to continue. As emerging markets drive the next phase of growth, mid-tier brands are targeting the premium segment, while premium brands aim to sell more of their highest-priced models. This shift towards premiumization is expected to boost both global smartphone revenues and operating profits, starting in the second half of 2023.

A Recovery on the Horizon

Despite the challenges faced by the smartphone market, there is hope for a recovery. Counterpoint Technology Market Research predicts that the market will see a turnaround in the near future, supporting the industry during a period of lower shipments. This recovery is expected to be driven by the increasing demand from emerging markets and the continued focus on premiumization.

About Counterpoint Technology Market Research

Counterpoint Technology Market Research is a global research firm specializing in the technology, media, and telecom (TMT) industry. With a team of seasoned experts, they provide monthly reports, customized projects, and detailed analyses of the mobile and technology markets to major technology and financial firms. Their insights and research help businesses stay ahead in the ever-changing world of technology.

Contact Information

If you have any questions or would like more information about Counterpoint’s latest research and insights, feel free to reach out to them at press@counterpointresearch.com. You can also visit their Data Section, which is updated quarterly, to view the smartphone market share for the world, US, China, and India.

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