Smartphone markets recovering slower than expected in 2022
Kar-Tr

According to reports by International Data Corporation or IDC, worldwide smartphone market shows more prolonged recovery than expected. Shipments of smartphones to drop 9.1% in 2022, a reduction of 2.6 percentage points from the previous forecast.
Smartphone shipment volumes to total 1.24B units in 2022. 2023 recovery expected to be 2.8% and IDC lowered 2023 smartphone forecast by roughly 70M units, due to the ongoing macroeconomic environment and its overall impact on demand.

Ryan Reith, Group VP with IDC's Worldwide Mobility and Consumer Device Trackers commented "We believe the global smartphone market will remain challenged through the first half of 2023, with hopes that recovery will improve around the middle of next year and growth across most regions in the second half. Rising costs are an obvious concern for the smartphone market and adjacent consumer technology categories, but we believe most of this reduced demand will be pushed forward and will support global growth in late 2023 and beyond. A device refresh cycle continues to build in many challenged emerging markets while developed markets have offset rising costs with increased promotional activity, more attractive trade-in offers, and extended financing plans. This has supported growth in the high-end of the market despite the economic headwinds."
Comments from Anthony Scarsella, research director with IDC's Worldwide Mobility and Consumer Device Trackers, "Despite the market slowdown, average selling prices (or ASPs) continue to grow as consumers opt for premium devices that can last three to four years as refresh rates elongate in both developed and emerging markets. Smartphone ASPs are expected to grow for the third consecutive year as average selling prices will reach $413, up 6.4% from $388 in 2021. The last time the market witnessed ASPs surpass $400 was in 2011 ($425), when the market displayed over 60% shipment growth. Moreover, iOS unit share will reach 18.7% (the highest of any forecast year), which is a driving force behind the high ASP growth we currently see in 2022."
Tickers to watch: Samsung Electronics (OTCPK:SSNLF) (OTCPK:SSNNF); Apple (AAPL); Xiaomi (OTCPK:XIACF) (OTCPK:XIACY); Nokia (NOK) (OTCPK:NOKBF); Telefonaktiebolaget LM Ericsson (ERIC) (OTCPK:ERIXF)