Smartphone Sales See First YoY Growth in Over Two Years: Counterpoint

After 27 straight months of declining sales compared to the previous year, global smartphone shipments witnessed year-over-year growth for the first time in October 2023. According to preliminary data from market research firm Counterpoint Research, overall smartphone sell-through volumes increased 5% year-over-year last month.

This marks a turning point for the smartphone market, facing headwinds over the past two years due to component shortages, inventory accumulation by brands and vendors, and consumers extending replacement cycles. The uncertain macroeconomic environment has further dampened smartphone demands globally.

Solid performances led the year-over-year growth in October in emerging markets. The Middle East and Africa region continued its recovery, while Huawei made a comeback in its home market of China. India punched above its weight and accounted for most of the monthly gains, benefitting from the onset of festive season promotions and sales. Developed markets with high smartphone penetration have been slower to rebound.

One contributing factor was the delayed launch timeline of the iPhone 15 series compared to last year. Apple unveiled its new flagship lineup one week later in 2022, pushing more iPhone sales into October.

Counterpoint Research expects the global smartphone market to maintain its momentum on the encouraging October numbers. The firm forecasts overall shipments to increase year-over-year in the current quarter (Q4 2023), putting the market on a gradual recovery track in the quarters ahead.