In its global smartphone forecast, Canalys said the smaller decline is being fuelled by a return to growth in the Middle East, Africa and Latin America at 9 per cent, 3 per cent and 2 per cent respectively.

The market is then expected to rebound fully in 2024, with shipments to reach 1.17 billion units, up 4 per cent.

Senior analyst at Canalys, Toby Zhu said the “smartphone industry is clearly emerging from its darkest days”, with consumers placing more value on their devices due to average selling price hitting $440 today compared with $332 in 2017, which he said was a peak year for the sector.

Sanyam Chaurasia, also senior analyst, said the smartphone rebound will be driven by upgrades in emerging markets as “devices remain integral to connectivity, entertainment and productivity”.

Chaurasia also said one-in-three smartphones shipped in 2024 will be sold in Asia Pacific due to strong upgrade demand.

Canalys noted Chinese brands including Honor and Xiaomi “are expected to aggressively expand outside Greater China” thanks to improving business conditions.