According to analysts, the smartphone market has been in decline for the fifth quarter in a row. Shifting consumer priorities have seen smartphone shipments fall to their lowest level in a decade in 2022. However, the beginning of 2023 did not improve the situation.
In the first quarter of 2023, smartphone shipments fell by another 12%, compared to the same period last year. At the same time, Canalys analysts believe that the market is showing signs of stabilization. They are optimistic about the improvement of the economic situation in the second half of this year, which should stimulate consumer demand.
But in the first quarter of 2023, buyers took their time to upgrade their devices. The main reasons for the low demand for smartphones are high inflation, changing consumer priorities and instability in the supply chain. Despite an overabundance of chips and other components, as well as aggressive marketing campaigns, people have been using their smartphones longer and see them as products that get better with each new generation. There is no great need to change smartphones often, so many devices satisfy owners for many years and serve until they break.
Last quarter, the leader in the smartphone market changed again. Samsung was able to increase its market share to 22% and occupy the first line of the ranking in terms of smartphone supply. Good sales of the iPhone 14 Pro allowed Apple to take second place with a 21% market share.
Three positions in the top five are occupied by Chinese brands, although even the best of them is about 2 times inferior to the leaders:
- Xiaomi – 11%
- Oppo – 10%
- Vivo – 8%.
According to Canalys, most brands are taking steps to reduce existing inventory and adjust production to meet lower demand. The most striking example is Samsung, which has reduced the production of memory chips until prices stabilize and demand increases again.
In general, this picture is characteristic not only of the smartphone market, but also of the entire technology industry. The supply of computers also fell by about a third. Optimistic forecasts indicate a possible recovery at the end of the year.
Source: techspot
