BEIJING, June 1 - Bond.az reports that the global smartphone market is heading for its steepest annual contraction on record. Counterpoint Research says shipments are projected to slump by 13.9% this year to 1.08 billion units.
The forecast is a downgrade from the 12.4% decline projected in February, with the squeeze in global chip supply exacerbated by the Iran war.
The impact is being felt most acutely in lower-end smartphones as chipmakers shift production capacity to AI-related chips, making entry-level devices less economical to produce.
Global smartphone wholesale prices rose 14% in the first quarter while shipments fell 3.1% year on year. That trend is expected to continue.
"Smartphone makers in the low and mid-tier are caught between cost increases they cannot absorb and consumers with limited spending power," said Wang Yang, principal analyst at Counterpoint. "The question is no longer how to grow shipments or market share, but whether to remain in the market at all."
The premium segment has proven more resilient. Apple posted record revenue for the first three months, helped by customers upgrading to its iPhone 17 series. Samsung Electronics kept volumes steady.
Transsion, which is heavily exposed to the market for smartphones priced below $150, is forecast to suffer a 32% drop in shipments this year. Rivals Xiaomi and Honor are projected to post declines of 28% and 20% respectively.
