By Arsheeya Bajwa

March 28 (Reuters) - Global smartphone shipments are

expected to rebound 3% this year as easing inflation aids a

demand recovery in emerging markets and the integration of

generative AI attracts buyers to premium devices, a report by

Counterpoint Research said on Thursday.

Global shipments had declined more than 4% last year,

earlier data from the research firm showed, as consumers

tightened their purse strings in an uncertain economy.

Emerging markets such as India, the Middle East and Africa

are seen to be major growth drivers for the smartphone market,

especially the budget-economy segment.

The budget segment, expected to grow 11% in 2024 after

shrinking in 2023, will also see increasing demand in the

Caribbean and Latin American regions.

The segment, consisting of phones priced between $150 and

$249, is set to benefit from easing inflation in regions such as

Africa and stabilization of local currencies, Counterpoint said.

Increased competition between Chinese companies such as

Oppo, Vivo and Xiaomi ( XIACF ), along with a recovery in demand

for IT devices, also aided growth in the segment.

The premium segment, with phones priced between $600 and

$799, is expected to grow 17%. The introduction of much-coveted

genAI technology and the popularity of foldables will stimulate

demand for this segment, the report said.

Apple ( AAPL ) and Chinese rival Huawei are likely to emerge

as winners in the premium market, it said.

Steady demand for iPhones, particularly in emerging markets,

is set to benefit Apple ( AAPL ), while Huawei is expected to retain its

strong presence in China, especially with the release of its 5G

Kirin chipset, the report stated.

Competition from Huawei led to a 24% decline in iPhone sales

in China in the first six weeks of 2024, Counterpoint had

estimated earlier.

Separately, Apple ( AAPL ) is in talks to build Google's Gemini AI

engine into the iPhone, according to media reports from earlier

in March.