Global Smartphones Set for Return to Growth as 5G Powers On, Says IDC

After a stronger-than-expected Q3, the global smartphone market is expected to return to growth during the holiday quarter, said IDC Wednesday. It forecast 2.4% growth vs. Q4 2019, followed by 4.4% growth next year, fueled by “an impressively quick supply chain recovery” and incentives from OEMs and channels for 5G handsets. Despite lockdowns and economic concerns, consumers in many markets have shifted spending to consumer electronics from travel, dining out and general leisure activities, said analyst Ryan Reith. The recovery in China was slower than anticipated largely due to weaker-than-expected demand for 5G. IDC expects 5G smartphone shipments to reach close to 10% of global volume this year, growing to 29% in 2024. Despite concerns about the lack of demand for 5G, “the wheels are in motion to transition the mobile industry to the latest network technology,” with cost a key factor. Getting 5G pricing on par with 4G phones is an industry focus, IDC said. The research firm expects worldwide 5G average selling prices to drop 25% this year to $611, and to $453 in 2024. “Aggressive promotions and more affordable 5G devices from major smartphone vendors are expected to partially offset the impact" of COVID-19, said analyst Sangeetika Srivastava.