The drop in global smartphone market to continue in Q4 22 and till 1H 23
Revenue from the new global smart phone sales in the year 2022 is continuously dropping, and the fall is expected to continue till second quarter of 2023. Market researcher Canalys predicts a gloomy outlook for some more quarters where it finds the global smartphone market recorded its third consecutive decline in third quarter of 2022, down by 9% year-on-year, calling it a worst Q3 since 2014.
Apple, the number one vendor in this market holds on to its position with 22% market share. Apple is exceptional in this market where it could sell more iPhones and records a positive growth with a share of 18% share. China-based brands Xiaomi, OPPO and vivo hold a share of 14%, 10% and 9% global market respectively.
“The smartphone market is highly reactive to consumer demand and vendors are adjusting quickly to the harsh business conditions,” said Canalys Analyst Amber Liu. “For most vendors, the priority is to reduce the risk of inventory building up given deteriorating demand. Vendors had significant stockpiles going into July, but sell-through gradually improved from September owing to aggressive discounting and promotions. The pricing strategy of new products is cautiously crafted, even for Apple, to avoid significant pushback from consumers who now tend to be very sensitive to any price hike,” added Liu.
“As demand shows no signs of improvement moving into Q4 and H1 2023, vendors have to work on a prudent production forecast with the supply chain while working closely with the channel to stabilize market share,” said Canalys Analyst Sanyam Chaurasia. “Going into the sales season, consumers who have been delaying purchases will expect steep discounts and bundling promotions as well as significant price reductions on older generation devices. Compared to the strong demand period of the previous year, a slow but steady festive sale is anticipated in Q4 2022. However, it will be too soon to see the upcoming Q4 as the real turning point of market recovery.”
Author: Srinivasa Reddy N