Mobile phone purchases are on the rise, with signs of growth in Q4 shipments in 2023, despite an overall yearly drop, as per the recent data from the International Data Corporation. iPhones have shown stronger performance compared to other brands and the adoption of 5G technology is projected to drive sales even further.

Global shipments of smartphones are predicted to surge 7.3% in Q4 in comparison to the same period in the previous year. Despite an anticipated overall decline of 3.5% to 1.16 billion units in 2023, the outlook is more optimistic than the 4.7% fall forecasted earlier in the same year. IDC predicts that the market will witness a recovery with a growth of 3.4% in 2024.

Apple has proven to be the most adaptive in the face of these macroeconomic challenges. This is largely due to the affluence of its customer base and dynamic trade-in and finance options that predominantly focus on high-end products, thereby making them more affordable and accessible, Nabila Popal, IDC's Director of Research for Mobility and Consumer Device Trackers, said.

In 2023, the average smartphone price is projected to rise by 5.5% to $438, continuing a four-year trend of increasing prices, largely driven by the bolstered sales of premium phones globally. However, this upward trend is expected to slow down, with prices potentially falling to $398 by 2027, albeit this is still a higher price than previously projected.

The iOS operating system has displayed a slight superior performance this year, despite a challenging market, with a marginal growth of 0.6%, reaching its highest-ever market share of 19.6%. Android phones, in contrast, are likely to experience a decline of 4.4%. In the long term, however, Android is predicted to grow faster than iOS, reaching an approximate market share of 81.3% by the end of the projected period, according to IDC.

The Huawei brand has shown some promising potential recently, with the September quarter reflecting more than two-fold growth in net profit for the leading Chinese tech giant. This is partly attributed to the successful initial sales of its Mate 60 Pro smartphone series, priced at roughly $1,200 and selling 1.6 million units within the first six weeks following its August end launch.

5G is expected to bring about a significant market rebound as such phones become more prevalent in developed markets and gradually penetrate emerging markets over the next year and beyond. It is projected that global 5G smartphone shipments will grow by 11% in 2023 and 20% in 2024. The market share of 5G smartphones is expected to rise from 61% in 2023 to 83% by 2027.