Conditions are expected to remain tough in 2023; the global smartphone market will witness flat to marginal growth: Canalys
As per recent reports, global smartphone shipments dropped by 17% year on year (YoY) in Q4 of 2022. The findings suggest that all the vendors reeled under extreme challenges in 2022, as the shipments declined by 11% to hardly reach the mark of 1.2 billion.
Getting its highest-ever quarterly market share at 25%, Apple remained in the first spot this quarter too, despite lowering demand and manufacturing issues in Zhengzhou. Despite being the largest vendor for the full year, Samsung stood second with a 20% market share in smartphones. Xiaomi, OPPO and vivo took the next three spots respectively, with 11%, 10% and 8% of the market shares.
A research Analyst with Canalys, Runar Bjørhovde stated that Q4 marked the worst annual and Q4 performance in a decade. “The smartphone vendors have struggled in a difficult macroeconomic environment throughout 2022. The channel is highly cautious with taking on new inventory, contributing to low shipments in Q4. Backed by strong promotional incentives from vendors and channels, the holiday sales season helped reduce inventory levels. While low-to-mid-range demand fell fast in previous quarters, high-end demand began to show weakness in Q4. The market’s performance in Q4 2022 stands in stark contrast to Q4 2021, which saw surging demand and easing supply issues.”
“Vendors will approach 2023 cautiously, prioritizing profitability and protecting market share,” commented Canalys Research Analyst Le Xuan Chiew. “Vendors are cutting costs to adapt to the new market reality. Building strong partnerships with the channel will be important for protecting market shares as difficult market conditions for both channel partners and vendors can easily lead to strenuous negotiations.”
As per Canalys, the global smartphone market will witness flat to marginal growth in 2023, with conditions expected to remain tough. In the words of Chiew, Though inflationary pressures will gradually ease, the effects of interest rate hikes, economic slowdowns and an increasingly struggling labour market will limit the market’s potential.” Some regions like Southeast Asia are still likely to grow in the second half of 2023, following a probable economic recovery, added Chiew.
Canalys is an independent analyst company which delivers smart market insights to IT, channel and service provider professionals around the world. Canalys’ PC Analysis service provides quarterly updated shipment data.