IDC: Mobile phones will recover next year

Date: 2023-09-10

News Type:

News briefing

As indicated from the latest report of market research agency IDC, global shipments of smartphones in 2023 are estimated to reach 1.15 billion units, an annual decrease of 4.7%, which is believed to be the lowest in a decade. However, IDC estimates that the mobile phone market will recover next year as inventory conditions continue to improve, with an annual growth rate of shipments to reach 4.5%. IDC is therefore optimistic about mobile phone shipments, and expects positive growth in the next five years.

Impact analysis

According to estimates from various market research agencies, the size of the smartphone market this year will probably drop to 1.1 billion units, a decrease of about 10% compared to the 1.2 to 1.3 billion units of previous years. As the mobile phone market has remained sluggish this year following a decline of two consecutive years, the performance of major chip manufacturers for mobile phones, such as Qualcomm and MediaTek, have also declined. Based on Qualcomm's financial report from last quarter, consolidated revenue fell by 23% compared to that of the same period last year, while the mobile-phone chip business faced the greatest drop, reaching 25%. On the other hand, the automotive chips business saw annual growth of 13%, demonstrating market demand. The decline in demand has mainly been caused by the unclear global economic situation and a slower economic recovery than expected in mainland China, so the downturn in the consumer electronics market did not improve. Consumers are also facing high inflation, forced to reduce their discretionary spending, leading to more conservative consumer behavior; more and more people are choosing to extend the replacement cycle or purchase affordable second-hand refurbished phones. The second-hand mobile phone market has continued to grow by two digits, which is another factor impacting the sales momentum of new mobile phones.

However, IDC also predicts that it is likely that shipments of iOS devices, such as iPhones, are expected to grow by 1.1% this year, with a market share of 19.9%, which is believed to be a new record. In comparison, shipments of Android devices this year should decrease by 6% due to overall economic challenges, which could bring positive prospects to Taiwan's PCB industry as iPhones account for nearly 60% of mobile phone boards in Taiwan. Increased shipments should there be conducive to the growth of Taiwan's PCB industry. Having benefited from the demand for new iPhones, it is estimated that Taiwan’s PCB industry should enjoy outstanding growth momentum in the third quarter with respect to FPC, HDI, and BT carrier boards.

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IDC: Mobile phones will recover next year

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