Global smartphone shipments declined 9 percent year-on-year (YoY) for the July-September period (Q3) in 2022, shows a new report by market research firm Canalys. Following past trends, Samsung had the major share of the worldwide smartphone shipments. Apple was in second place, followed by Chinese smartphone brands including Xiaomi, Oppo, and Vivo in the top five spots. The Cupertino-based company was the only brand that registered positive growth in its market share despite the fall. Canalys observes that robust demand for iPhone models helped the company to mark positive yearly growth. Canalys said that a gloomy economic outlook has led consumers to delay purchasing electronic hardware and prioritise essential spending.
The report by Canalys said that worldwide smartphone shipments dropped 9 percent year-on-year amid unfavourable economic conditions and decreased consumer spending in the third quarter. This is the worst quarterly result since Q3 2014, noted the report. Canalys analysts expect smartphone demand to remain dull for the next six to nine months with more consumers shifting their focus from “electronic hardware” purchases to “essential spending”.
Samsung emerged as the largest contributor to worldwide smartphone shipments in the third quarter of 2022 with a 22 percent market share compared to 21 percent in Q3 2021, driven by heavy promotions to reduce channel inventory. Apple though gained more than the market share of Samsung. The iPhone maker was the only vendor in the race to see positive growth despite the overall decline in shipments. With the growing demand for its iPhone models, the Cupertino company captured an 18 percent market share in the mentioned period, up from 15 percent a year ago.
Xiaomi got a 14 percent market share, while Oppo and Vivo received 10 percent and 9 percent global market shares, respectively. As per the report, Chinese smartphone brands took a cautious approach to overseas expansion given domestic market uncertainty.
Canalys analyst Sanyam Chaurasia indicated that companies will need to regulate production forecasts with the supply chain. “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,” he said.
Canalys analysts also predict slight signs of improvement in smartphone demand in Q4 this year. “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” noted the report.