According to a report by Counterpoint Research Released Thursday, global smartphone shipments are expected to rebound 3% this year as easing inflation supports demand recovery in emerging markets and the integration of generative artificial intelligence draws buyers toward high-end devices.
Global shipments had fallen more than 4% last year, according to earlier data from the analytics firm, after consumers tightened their belts in an uncertain economy.
Emerging markets like India, Middle East and Africa are the major growth drivers of the smartphone market, especially in the budget segment.
The economy segment, which is expected to grow 11% in 2024 after shrinking in 2023, will also see increased demand in the Caribbean and Latin American regions.
This segment, made up of phones priced between $150 and $249, will benefit from easing inflation in regions such as Africa and stabilization of local currencies, according to Counterpoint.
Increased competition among Chinese companies such as Oppo, Vivo and Xiaomi 1810.HK, along with the recovery in demand for computing devices, also contributed to the segment's growth.
The premium segment, with phones priced between $600 and $799, is expected to grow 17%. The introduction of the much-coveted generative artificial intelligence technology and the popularity of foldables will spur demand in this segment, according to the report.
According to data from Counterpoint Research, Apple AAPL.O and its Chinese competitor Huawei are likely to emerge victorious in the premium market.
Steady demand for the iPhone, especially in emerging markets, will benefit Apple, while Huawei is expected to maintain its strong presence in China, especially with the launch of its Kirin 5G processor, according to the report.
Competition from Huawei caused a 24% decline in iPhone sales in China in the first six weeks of 2024, Counterpoint had previously estimated.
Separately, Apple is in talks to incorporate Google's Gemini AI engine into the iPhone, according to media reports in early March.
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