The global smartphone market is expected to decline

The US-based market research company International Data Corporation (IDC) shared its forecasts for the smartphone market.

IDC's statement said global smartphone shipments are expected to decline 12.9 percent annually this year to 1.12 billion units.

The statement emphasized that this decline would reduce the smartphone market to its lowest annual shipment volume in more than 10 years, explaining that this estimate reflects the downward revision of previous estimates due to the worsening memory supply crisis.

The statement said that a regional decline is expected primarily in markets where lower-end smartphones are concentrated.

The statement said the Middle East and Africa region will see the largest decline at 20.6 percent on an annual basis. A decline of 10.5 percent is forecast for China, one of the world's two largest markets, and a decline of 13.1 percent for the Asia-Pacific region.

The statement said that with the storage crisis stabilizing by the middle of next year, a limited 2 percent recovery in the smartphone market is expected in 2027 and a stronger increase of 5.2 percent on an annual basis in 2028.

Smartphone sales prices are expected to reach record levels

In her assessment of the matter, Nabila Popal, senior research director at IDC, explained that the storage crisis will not only lead to a temporary decline, but points to a structural realignment of the entire market.

Noting that lower-end sellers will face sharp declines in shipments due to supply shortages and weaker demand amid higher prices, Popal said, “Although shipments will decline to record levels, the average selling price of smartphones is expected to rise 14 percent this year to reach a record $523.” he said.