Smartphone manufacturers witnessed a downturn in sales in the second quarter of this year as shipments declined by 9%. This came as demands for smartphones slowed down globally due to rising inflation.
According to the latest report by Canalys, a global smartphone analyst company that monitors shipments by device makers. the global economic gloom is set to set a bad year for the devices manufacturers as shipments had also declined 11% in Q1.
The Q2 report shows that Samsung took first place with a 21% market share as it strengthened its low-end A series supply. Apple came second with a 17% share as the iPhone 13 remained in high demand.
However, Xiaomi, OPPO and Vivo continued to struggle in China, suffering double-digit declines to take 14%, 10%, and 9% market shares respectively.
What they are saying
- Commenting on the report, Canalys Research Analyst Runar Bjørhovde, said: “Vendors were forced to review their tactics in Q2 as the outlook for the smartphone market became more cautious. Economic headwinds, sluggish demand, and inventory pileup have resulted in vendors rapidly reassessing their portfolio strategies for the rest of 2022.”
- “The oversupplied mid-range is an exposed segment for vendors to focus on adjusting new launches, as budget-constrained consumers shift their device purchases toward the lower end,” he added.
- Another Canalys Analyst, Toby Zhu, said: “Falling demand is causing great concern for the entire smartphone supply chain. While component supplies and cost pressures are easing, a few concerns remain within logistics and production, such as some emerging markets’ tightening import laws and customs procedures delaying shipments.”
- “In the near term, vendors will look to accelerate sell-through using promotions and offers ahead of new launches during the holiday season to alleviate the channel’s liquidity pressure. But in contrast to last year’s pent-up demand, consumers’ disposable income has been affected by soaring inflation this year. Deep collaboration with channels to monitor the state of inventory and supply will be vital for vendors to identify short-term opportunities while maintaining healthy channel partnerships in the long run,” he further stated.
