iPhone is a big winner despite historic downturn in worldwide smartphone shipments

Apple Inc. continues to shine despite a historic downturn in smartphone shipments worldwide.

Shipments of Apple AAPL, +0.50% iOS devices such as the iPhone are expected to grow 1.1% in 2023 to an all-time-high share of 19.9%, according to the International Data Corporation’s Worldwide Quarterly Mobile Phone Tracker. The resilience of iOS despite macroeconomic challenges is in stark contrast to Android devices, whose share is forecast to decline 6% in 2023.

That forecast comes as Apple prepares to unveil new iPhones on Sept. 12. Alphabet Inc.’s GOOGL, +0.73% GOOG, +0.77% Google has set Oct. 8 for its launch of Pixel 8 phones.

Global smartphone shipments are forecast to decline 4.7% year over year in 2023 to 1.15 billion units, the lowest volume in a decade, IDC said. Previously, the market researcher anticipated a 3.2% drop in shipments because of a weaker economic outlook and inflation, which has dampened consumer demand and lengthened refresh cycles.

Despite the lower forecast for 2023, IDC expects the market to recover in 2024 with 4.5% year-over-year growth, followed by growth in the low single digits through the remainder of the forecast, resulting in a five-year compound annual growth rate of 1.7%.

U.S. smartphone shipments dropped 24% in the second quarter, the third consecutive quarterly decline, according to IDC. Samsung Electronics Co. 005930, -0.30%, Motorola and TCL-Alcatel saw the sharpest decreases in shipments.

Salesforce Inc. co-founder and Chief Executive Marc Benioff warned Tuesday that the company's upcoming Dreamforce conference could be its last in San Francisco if it's affected by the city's homelessness and open drug use.

Jon Swartz is a senior reporter for MarketWatch in San Francisco, covering many of the biggest players in tech, including Netflix, Facebook and Google. Jon has covered technology for more than 20 years, and previously worked for Barron's and USA Today. Follow him on Twitter @jswartz.