Korean Media: Global Smartphone Shipments Expected to Drop 13% This Year!

On March 31, South Korean media outlet *Herald Economic* published an article stating that global smartphone shipments are forecasted to decline by double digits this year, marking the largest drop on record. According to analysis, this is due to soaring prices and supply shortages in memory semiconductors driven by the boom in artificial intelligence.

Market research firm IDC forecasts global smartphone shipments this year at approximately 1.1 billion units, a 12.9% decrease compared to last year’s 1.26 billion units—reaching its lowest level in over a decade.

After a 3.4% decline in 2023, global smartphone shipments increased by 6.2% in 2024 and by 2.0% last year. However, IDC predicts a sharp 12.9% drop this year, followed by annual growth from next year through 2030. IDC stated: “The current situation in the market is not just temporary pressure but a tsunami-like impact triggered by memory supply chain disruptions. The ripple effects are spreading throughout the entire consumer electronics industry.”

This forecast stems from growing concerns over surging demand for high-performance memory required for AI computing, with global supply expected to struggle meeting demand through next year. IDC anticipates that low-end smartphone manufacturers, particularly those focused on Android devices, will suffer significant setbacks in the global smartphone market.

Conversely, Samsung Electronics and Apple are expected to benefit under these circumstances, positioning themselves to expand their market share. While low-priced smartphone makers face challenges due to rising component costs, Samsung and Apple will concentrate on selling high-performance, premium products, reinforcing their competitive advantage and potentially increasing their market share. It is projected that although smartphone shipments will decline, average selling prices will rise by 14% this year—setting a historical high.

From a regional perspective, shipments will see significant declines in markets with higher proportions of low-cost smartphones. The Middle East and Africa are expected to experience the sharpest drop, declining by 20.6% year-on-year. China and the Asia-Pacific region are projected to decline by 10.5% and 13.1%, respectively.

Original source: toutiao.com/article/1861163709561866/

Disclaimer: The views expressed in this article are solely those of the author.