Smartphone sales are picking up finally, after three years of slowdown, providing some relief to the once fast-growing industry where one new tech breakthrough could well be the difference between market leadership and oblivion.
The tech that could define that in the coming months? Artificial intelligence (AI), but of course.
A 6% year-on-year growth in global smartphone sales in the April-June 2024 period, coming as it does as the third consecutive quarter of market growth could signify that the post-Covid trauma of what was once the fastest-growing consumer category in the world could well now be over.
“The growth in smartphone sales over the last three quarters is good news for the industry. The sales were at the lowest point in a decade in 2023 but the market was quick to rebound thanks to improving consumer sentiments and inventory positions,” said Tarun Pathak, research director with Counterpoint, one of the world’s leading mobile phone consultancy.
“Almost all markets exhibited signs of growth and we remain optimistic for upcoming quarters,” Pathak predicted.
The arrival of multiple smartphone models in the coming months all loaded with myriad AI features, the industry hopes, will be the antidote to the nearly three years of slump in sales, now attributed to macroeconomic factors and lowered consumer sentiments due to post-Covid uncertainties and a rise in inflation in many countries.
“We expect smartphone volumes to grow slowly in coming years,” said Counterpoint senior analyst Ankit Malhotra, who quickly added, “However, we expect revenues to grow faster than sales driven by the premiumisation across regions, especially with the rise of newer form factors and capabilities, like foldables and GenAI.”
Last week saw Samsung, the market leader in global smartphones, unveil a new range of products in its foldable range, with AI features packed in. Apple, of course, has set fanboys agog with its promise of packing AI into its OS, with the launch of the new iPhone 16 less than two months away.
Vivo topped the charts not just in India, but also in China, ending up as the fourth biggest smartphone brand in the world, behind Samsung, Apple and Xiaomi. Fellow Chinese brand OPPO rounded off the top five smartphone brands in the world.