As the end of this year is approaching, reports indicate that smartphone sales are improving. Over the past two years, the global smartphone market saw a severe downturn, but things are returning to normal. And that is great timing for the launch of the Galaxy S24 series.
Smartphone sales are estimated to rise by 4% in 2024
The global smartphone market is expected to cross shipments of around 1.12 billion devices this year, which will be a 5% drop compared to last year. That is an improvement compared to the 12% decline that the market experienced last year. These numbers come from a market research report from Canalys. Next year, smartphone shipments are expected to rise by 4% compared to 2023, and that is a good sign for the Galaxy S24, which is expected to reach store shelves by the end of January 2024. By the year 2027, the global smartphone market is expected to grow annually at 2.6%, potentially reaching 1.25 billion shipments.
Next year, the European smartphone market will recover the fastest with a 7% growth, while the Asia Pacific and MEA (Middle East And Africa) markets won't be much behind with a 6% growth in annual shipments for each. The Latin American market is expected to grow 4% next year, while the Greater China market will see a slight uptick of 2%. The North American market (Canada and USA) will see a 2% decline, though. However, the good news is that consumers are placing more value on smartphones, buying costlier devices as the smartphone has become a hub for many things in a user's day-to-day life. The average selling price of smartphones has increased from $332 in 2017 to $440 in 2023. This is where Samsung's strategy is aligned, as the company is trying to improve the sales of its high-end phones for better profitability. It is aiming to sell more than 20 million foldable phones next year.
Toby Zhu, Senior Analyst at Canalys, said, “The smartphone industry is clearly emerging from its darkest days, even as the shipments remain over 20% below its 2017 peak. The good news is that consumers are placing more value on their devices than ever before, with average selling prices now exceeding US$440 versus US$332 in 2017. Profitability is looking up for hardware makers strategically launching flashy new features to captivate consumers in key growth markets.”
Chinese brands to expand globally in 2024 to compete with Samsung
In 2024, the Asia Pacific region will see the most smartphone sales, with resurging demand from India, South Asia, and Southeast Asia. Canalys expects less than 5% of smartphones sold next year to have on-device AI capabilities. The Galaxy S24 is expected to be Samsung's first AI smartphone, featuring several AI and Generative AI capabilities, including real-time language transliteration during calls and text-to-image generation. Chinese smartphone brands, including Honor, Transsion (Infinix, Itel, and Tecno), and Xiaomi, are expected to launch in more countries globally to compete with Samsung.
