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Smartphone shipments are to remain flat in 2023 amid a global slowdown, as it is expected to continue underperforming through the first half of the year and start rising only from the third quarter of the year, a new report has shown.

According to Counterpoint Research, the global smartphone market will see 2 per cent (year-on-year) growth in 2023.

Smartphone shipments for 2022 lowered to 1.24 billion units on economic headwinds from the previous forecast.

"Persistent inflation, expectations of future interest rate hikes, souring corporate earnings, China's stalled economy, the protracted Ukraine-Russia war, political turmoil in Europe, and a sweeping new set of export controls on China from the US, all contributes to the downward adjustment of the smartphone market forecast," said Peter Richardson, Vice President at Counterpoint Research.

Moreover, as efforts to spread low and mid-priced 5G devices continue, the global market for 5G devices is expected to show healthy growth beginning in 2024.

Operators are actively promoting 5G, and the incentives in many markets are sufficient to entice consumers to adopt the new technology, according to the report.

The growth of premium smartphones will also be fuelled by new form factors such as foldable.

As more OEMs (original equipment manufacturer) enter the foldable segment, the market will see phone prices stabilise and the foldable segment grow in prominence alongside the 5G segment, the report added.