Global Smartphone Market Faces Record Contraction
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Newsfilter
- Market Contraction Forecast: Counterpoint Research reports that global smartphone shipments are projected to decline by 13.9% to 1.08 billion units, marking the steepest annual contraction on record, primarily due to worsening memory chip shortages, with this forecast downgraded from a 12.4% decline in February.
- Low-End Market Pressure: The lower-end smartphone segment is experiencing the most acute impact as chipmakers shift production to AI-related chips, making entry-level devices less economical to produce, resulting in a 14% rise in global smartphone wholesale prices in Q1 while shipments fell 3.1% year-on-year.
- Premium Market Resilience: Despite the overall market downturn, Apple posted record revenue in Q1, driven by upgrades to the iPhone 17 series, with 2026 shipments expected to remain flat before rising 5% next year, indicating resilience in the premium segment.
- Intensifying Competition and Market Pressures: Transsion is forecasted to suffer a 32% drop in shipments this year, while rivals Xiaomi and Honor are projected to see declines of 28% and 20% respectively, highlighting intensified competition in the low-end market amid rising cost pressures and limited consumer spending power.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 306.310
Low
239.00
Averages
306.89
High
350.00
Current: 306.310
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, Wearables, Home and Accessories. Its services include advertising, AppleCare, cloud services, digital content, and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its wearables include smartwatches, wireless headphones, and spatial computers. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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