Global smartphone shipments declined by 9 percent year-on-year (YoY) for the July-September (Q3) period of 2022, according to a new report from market research firm Canalys. Following previous trends, Samsung accounted for the largest share of global smartphone shipments. Apple came in second, followed by Chinese smartphone brands such as Xiaomi, Oppo and Vivo in the top five. The Cupertino-based company was the only brand to register positive growth in its market share despite the decline. Canalys noted that robust demand for iPhone models helped the company mark positive year-on-year growth. Canalys said a bleak economic outlook has led consumers to postpone purchasing electronic hardware and prioritize essential spending.
The report Canalys said global smartphone shipments fell 9 percent year-on-year amid unfavorable economic conditions and reduced consumer spending in the third quarter. This is the worst quarterly result since Q3 2014, the report noted. Canalys analysts expect smartphone demand to remain weak over the next six to nine months, with more consumers shifting their focus from purchases of “electronic hardware” to “essential spending.”
Samsung emerged as the largest contributor to global smartphone shipments in Q3 2022 with a market share of 22 percent compared to 21 percent in Q3 2021, driven by heavy promotions to reduce channel inventory. However, Apple more than gained Samsung’s market share. The iPhone maker was the only vendor in the race to see positive growth despite the overall decline in shipments. On the back of growing demand for its iPhone models, the Cupertino company captured an 18 percent market share in the said period, up from 15 percent a year ago.
Xiaomi secured 14 percent market share, while Oppo and Vivo secured 10 percent and 9 percent global market shares respectively. According to the report, Chinese smartphone brands have taken a cautious approach to overseas expansion given the uncertainty in the domestic market.
Canalys analyst Sanyam Chaurasia said companies should coordinate production forecasts with the supply chain. “As demand shows no signs of improving heading into Q4 and H1 2023, suppliers should work on a cautious production forecast with the supply chain while working closely with the channel to stabilize market share,” he said.
Canalys analysts also predict slight signs of improvement in smartphone demand in Q4 this year. “Compared to last year’s strong demand period, a slow but steady festive sell-off is expected in Q4 2022. However, it will be too early to see the coming Q4 as the true turning point of market recovery,” the report said.
