The global smartphone market has finally broken free from its two-year-long slump, experiencing a notable resurgence in October. Counterpoint Research’s latest data indicates a 5% increase in global monthly smartphone sell-through volumes, marking a pivotal moment as October becomes the first month to record year-on-year growth since June 2021. This positive turn comes after a challenging period of 27 consecutive months with negative year-on-year growth, attributed to a myriad of issues affecting the industry.
The slump, which began in June 2021 and persisted for over two years, can be traced back to a series of challenges, including component shortages, inventory build-up, and the lengthening of replacement cycles, as outlined in Counterpoint’s comprehensive report.
Anticipated Recovery and Contributing Factors
Counterpoint Research is optimistic about the future, stating, “Following strong growth in October, we expect the market to grow year-on-year in the fourth quarter of 2023 as well, setting the market on the path to gradual recovery in the coming quarters.” This positive outlook is fueled by several key factors that have spurred the recent growth.
The resurgence in emerging markets has played a pivotal role, with the Middle East and Africa experiencing continuous recovery. Notably, Huawei’s successful comeback in China has contributed significantly to this rebound. Additionally, the onset of the festive season in India has further fueled the growth momentum.
Huawei’s impressive 37% surge in China smartphone sales during the third quarter, driven by the popularity of its Mate 60 series phones, stands out as a noteworthy highlight. While developed markets with higher smartphone saturation have been slower to recover, the report highlights the launch of Apple’s iPhone 15 series as a contributing factor to the overall positive trend.
