Mumbai: The global smartphone market is bracing for a downturn, with shipments projected to fall in 2026, according to a sobering report by Counterpoint Research.
The analysis, released this week, paints a grim picture, citing economic uncertainties, sluggish innovation, and shifting consumer preferences as key culprits behind the anticipated slump.
This marks a rare setback for an industry that has long driven technological progress.
Counterpoint predicts a 2-3% drop in global smartphone shipments, with mature markets like North America and Europe hit hardest. Rising inflation and supply chain disruptions are dampening demand, while consumers, increasingly wary of frequent upgrades, are holding onto devices longer. In India, however, the market shows resilience, buoyed by affordable 5G models and a growing middle class. We expect brands like Xiaomi and Realme to gain ground, despite challenges faced by premium players like Apple.
The report underscores a positive aspect: the emergence of foldable smartphones and AI-driven features could potentially stimulate niche growth. Yet, with innovation cycles slowing, manufacturers must rethink strategies to reignite consumer excitement.
Analysts urge brands to focus on sustainability and value-driven offerings to counter the slump.
As the smartphone industry navigates this rough patch, its ripple effects could reshape tech ecosystems worldwide. For India, the opportunity lies in capturing budget-conscious buyers, but the global market’s woes signal a need for bold reinvention.