Smartphone Slump Predicted, Yet Apple Eyes Top Spot - Research Shows

Global smartphone shipments are heading for their worst performance in a decade, primarily impacted by challenges in the U.S. and China. 

In a contrasting scenario, Apple Inc AAPL stands a chance to emerge as the dominant player in the smartphone market, buoyed by the steady demand for its premium iPhone line, CNBC cites a Counterpoint Research report.

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Shipments vs. Sales

Shipments differ from sales because they signify the number of devices smartphone manufacturers dispatch to sellers. Counterpoint Research projects a 6% year-on-year slump in smartphone shipments in 2023, totaling 1.15 billion devices.

Factors At Play

Challenges in Asia, particularly in China, have posed significant hurdles. While China was likely to witness an economic revival, its performance has been underwhelming. 

Once boasting an average smartphone purchase of 450 million units annually, the figures have now plummeted to 270 million. North America, especially the U.S., also played a part in hampering global recovery.

Apple's Robust Stance

High-end smartphones have generally weathered the downturn, with Apple leading the way. The forthcoming launch of the iPhone 15 in September is likely to bolster Apple's position further. 

The release provides a crucial opportunity for carriers to attract valuable customers, setting Apple on a favorable path. Despite the challenging market conditions, Apple's shipments will likely witness a minor uptick due to the rising demand in markets like China, where consumers increasingly gravitate towards premium devices.

There's an ongoing tussle for the top position between Apple and Samsung Electronics Co, Ltd SSNLF. 

If Apple maintains its current trajectory and steers clear of production issues, it could outpace Samsung, capturing the highest market share.

Apple's focus on emerging markets, especially India, is also noteworthy. The company made significant inroads into the Indian market in 2023, marking its presence with the inauguration of its first physical stores and a visit from CEO Tim Cook. 

The success of the iPhone 15 and Apple's growth in untapped iPhone markets will be pivotal in determining its global standing.

Price Action: AAPL shares traded higher by 0.21% at $176.91 premarket on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.