Smartphone Market Continues to Decline

According to a new forecast from market research firm IDC, the already sluggish forecast for smartphones looks to be headed toward a slightly steeper decline this year.

Global smartphone shipments will decline 3.2% in 2023, the firm said — almost triple the decline that had been forecast for the market in February (1.1% decline). Overall unit shipments are expected to hit 1.17 billion for the year.

IDC said causes include weak consumer demand, inflation, and a weaker economic outlook.

"Our conversations with channels, supply chain partners, and major OEMs all point to recovery being pushed further out and a weaker second half of the year," said Nabila Popal research director with IDC's Mobility and Consumer Device Trackers, in a prepared statement. "Consumer demand is recovering much slower than expected in all regions, including China. If 2022 was a year of excess inventory, 2023 is a year of caution. While everyone wants to have inventory ready to ride the wave of the inevitable recovery, no one wants to be stuck holding it too long. This also means the brands that take the risk — at the right time — can potentially reap great rewards of share gain."

IDC said it still expects the smartphone market to see a recovery in 2024, with 6% year-over-year growth anticipated.

For more information, visit IDC's Worldwide Quarterly Mobile Phone Tracker.

About the Author

David Nagel is the former editorial director of 1105 Media's Education Group and editor-in-chief of THE Journal, STEAM Universe, and Spaces4Learning. A 30-year publishing veteran, Nagel has led or contributed to dozens of technology, art, marketing, media, and business publications.

He can be reached at [email protected]. You can also connect with him on LinkedIn at https://www.linkedin.com/in/davidrnagel/ .


Featured

  • laptop with a neural network image, surrounded by books, notebooks, a magnifying glass, a pencil cup, and a desk lamp

    D2L Lumi AI Updates Add Personalized Study Supports

    Learning platform D2L has announced new artificial intelligence features for D2L Lumi that help provide more personalized study supports for students.

  • shield with an AI microchip emblem hovering above stacks of gold coins

    AI Security Spend Surges While Traditional Security Budgets Shrink

    A new Thales report reveals that while enterprises are pouring resources into AI-specific protections, only 8% are encrypting the majority of their sensitive cloud data — leaving critical assets exposed even as AI-driven threats escalate and traditional security budgets shrink.

  • consumer electronic devices—laptop, tablet, smartphone, and smart speaker—on a wooden surface with glowing AI icons hovering above

    OpenAI to Acquire Io, Plans Consumer AI Hardware Push

    OpenAI has announced plans to acquire io, an artificial intelligence hardware startup co-founded by former Apple design chief Jony Ive. The deal is aimed at creating a dedicated division for the development of AI-powered consumer devices.

  • magnifying glass with AI icon in the center

    Google Intros Learning-Themed AI Mode Features for Search

    Google has announced new AI Mode features in Search, including image and PDF queries on desktop, a Canvas tool for planning, real-time help with Search Live, and Lens integration in Chrome. Features are launching in the U.S. ahead of the school year.