The smartphone market is facing a significant downturn, with projected shipments declining by nearly 13% this year, totaling just 1.1 billion units. This downturn is primarily attributed to rising component costs and increased demand from the AI sector, leading to higher prices for consumers and a structural shake-up in the market.
This situation is crucial for anyone considering purchasing a new smartphone. With the average price expected to rise by 14% to around $523, potential buyers should brace themselves for higher costs. This trend will affect budget-conscious consumers the most, especially those looking for entry-level devices priced under $100, which may become increasingly difficult to find in the coming years.
In terms of market alternatives, higher-end smartphones from manufacturers like Apple and Samsung are likely to perform better amidst these market changes. While these brands may increase in market share, budget segments are projected to suffer, meaning options in the low-cost category might dwindle or become less reliable. Alternatives in various price ranges include devices from established mid-tier brands that might offer better specs per dollar, but they too will feel the effects of rising costs.
For consumers currently on the fence about buying a new smartphone, consideration of their specific needs is essential. Those looking for a solid entry-level phone may find that waiting or exploring refurbished models could be more beneficial, as new budget options may soon disappear or become less affordable. Alternatively, if someone prioritizes brand reputation and support over the latest tech at a lower price, investing in a well-reviewed mid-range model from a reliable brand might be worth the cost amidst the upward price trend.
Source:
www.01net.com
