As Apple Inc (NASDAQ:AAPL) gears up for the iPhone 15 launch, global smartphone sales are on track to plummet to their lowest since 2013.
According to Counterpoint Research, total smartphone shipments are projected to decline by 6% this year, amounting to 1.15 billion units, with economic challenges in China significantly dampening consumer spending across the globe.
The last time sales were this low was 10 iPhone generations ago, when Apple was preparing to launch the iPhone 5.
Jeff Fieldhack, Counterpoint’s North America research director, stated: "Despite strength in the (US) jobs market and inflation falling, consumers are hesitant to upgrade their devices.”
China’s struggling economy has notably affected consumer electronics spending beyond the country’s borders.
With tensions mounting between the US and China, smartphone demand among the largest population in the world could come under even more pressure.
The White House has restricted China’s access to semiconductor technology, limiting Chinese tech companies’ access to critical smartphone components.
Compounding these sanctions were draconian Covid-era lockdown policies which took a knife to China’s international competitiveness.
Yet despite these broader market challenges, Apple is inching closer to becoming the world's leading smartphone seller, potentially toppling South Korean firm Samsung.
Fieldhack stated that the gap between the two is "literally a few days' worth of sales”.
As Appleinsider reported, premium smartphones such as the iPhone continue to outperform their cheaper counterparts.
“Apple is still coming out on top of an incredibly bad smartphone market,” stated Appleinsider.
Counterpoint Research shows that between the second quarter of 2021 and the first quarter of 2023, Apple’s share of the smartphone market increased from 15% to 21%.
Samsung also increased its market share, from 18% to 22%, while the third-largest smartphone provider Xiaomi fell from 16% to 11%.
Apple is expected to announce the iPhone 15 next month.