There were almost 8.5 billion mobile subscriptions worldwide at the end of 2023, according to the Ericsson Mobility Report published in November 2023. This is a year-on-year increase of almost 2%.
The number of smartphone subscriptions continues to rise and, according to the report, is believed to have reached around 7 billion at the end of 2023, corresponding to over 82% of all mobile subscriptions. The Ericsson report forecasts it to increase by 2% annually in the coming years to reach 8 billion smartphone subscriptions in 2029.
After global smartphone sales had declined for several years and the market recovery that started in 2021 came to an abrupt end in 2022 due to geopolitical tensions and economic instability, the green shoots of a modest upswing were apparent in the second half of 2023.
The renewed growth that was hoped for with the advent of 5G now seems to be finally happening. The operators are continuing to expand their networks and are extending 5G technology coverage, which was expected to be available to 45% of the world's population by the end of 2023. The number of 5G subscriptions is also increasing. According to Ericsson estimates, by the end of 2023, 5G accounted for one fifth of all mobile subscriptions worldwide. Accordingly, more 5G smartphones are being sold. These were expected to account for 62% of all smartphones sold in 2023.
According to figures published by the International Data Corporation (IDC) at the end of January 2024, worldwide sales of smartphones in 2023 contracted by 3.2% year-on-year to 1.17 billion units, the lowest level for ten years. However, with more than 326 million smartphones sold in the fourth quarter and 8.5% growth in the second half of the year, the foundation for the recovery expected in 2024 has been laid.
According to IDC estimates at the end of 2023, the upward trend will continue in 2024 with growth of 3.8%. However, the market is reaching maturity, with the result that only single-digit growth rates can be expected in the next few years. Nonetheless, the introduction of 5G can be viewed as a positive aspect in the global market: 5G shipments are expected to increase by around 11% in 2023 and as much as 20% in 2024. The percentage of 5G smartphones in worldwide smartphone sales is expected to increase from 61% to 83% between 2023 and 2027.
Gartner also predicts that the smartphone market will return to growth in 2024: in the last quarter of 2023, growth was finally achieved again for the first time after nine consecutive quarters of declining figures. In 2024, worldwide smartphone sales are expected to increase by 4.2% to 1.2 billion units. According to Gartner projections, 22% of future sales, i.e. 240 million units, will be generative AI (GenAI) smartphones, that is smartphones equipped with hardware and software to perform AI functions and applications.
Last modification 14.05.2024