A German consulting firm coordinated the Mobile World Congress in Barcelona while GfK analyzed the global telecom market. Forecasts from industry analytics show 2022 to be a tougher year for telecom, yet some segments maintained solid results. By 2023, a stabilization in sales was expected across key categories.
In the smartphone segment including phablets, demand declined by 9.1 percent in 2022 compared with the previous year, totaling 908 million units sold. Revenue also fell, down 10.2 percent to 330 billion dollars, according to GfK. These figures reflect a wider pattern of cautious consumer spending and shifting purchase calendars across the market.
As consumer budgets tightened, the main market drivers in 2022 were high and upper-middle income groups. These cohorts grew by more than 4 percent over 2021 and now account for 48 percent of total spending. Demand for premium devices rose as well, with premium models contributing a portion of revenue in 2022. Devices with larger storage capacities also gained traction, as smartphones with 256GB or more storage rose 19 percent and accounted for 41 percent of total market revenue in 2022, according to GfK.
new shopping habits
Although many buyers continued to choose high-end smartphones, total purchases declined in 2022. A key factor is that owners are keeping devices longer. GfK data show that from January to September 2018 only 48 percent of shoppers had used their device for two years or more; by the same period in 2022 this share climbed to 57 percent, a gain of over 9 percentage points. The shift is most evident among Generation Z, ages 15 to 25, where the share is 14 percent higher than the overall average. The younger generation demonstrates a clear focus on sustainability and is consciously extending device lifespans, according to market observations.
Optimal forecasts for wearables
Wearables remained resilient through 2022, delivering turnover around 13.9 billion dollars and nearly matching 2021 performance, with a slight dip of 1.1 percent. While some categories faltered, others compensated with growth. The year-over-year revenue changes within wearables show notable shifts:
Health and Fitness trackers: decline of 31 percent
Smart watches: increase of 21 percent
Wrist Sports Computers: decline of 43 percent
These movements reflect growing consumer interest in health management through smart features. Devices with enhanced health monitoring, such as sleep tracking and blood oxygen sensors, posted gains of 4 percent and 20 percent respectively, and contributed to overall wearables growth. The push toward more granular health data supported innovations like stress level measurement EDA, which was introduced in late 2021 and now represents about 16 percent of wearables revenue, continuing to expand according to market insights.
Forecasts for 2023
GfK anticipates a stronger global Telecom market in 2023 after a relatively weak 2022. Projections suggest positive momentum for the main product categories as the market recovers and investment returns improve. Smartphone purchases during the peak of the pandemic extended device lifecycles, yet a refreshed equipment renewal cycle is expected to begin in 2023. Next‑generation health sensors in wearables and broader app ecosystems are likely to drive further growth. Revenue expansion is anticipated in the smartwatch category as well.
Advancements in health monitoring sensors and expanded app reach are expected to boost wearables in 2023. VR and AR are predicted to become more tangible beyond gaming, representing one of the most promising growth areas in the coming years.