Global smartphone shipments fall 9% in Q2 2022 as economic headwinds blow.
Shanghai (China), Bengaluru (India), Singapore, Reading (UK) and Portland (US) – Monday, 18 July 2022-
Worldwide smartphone shipments fell 9% year on year in Q2 2022. Demand has started to wane following economic headwinds and regional uncertainty. 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. Xiaomi, OPPO and vivo continued to struggle in China, suffering double-digit declines to take 14%, 10% and 9% market shares respectively.
Shipments of the iPhone 13 contributed to Apple’s increase in market share from 14% in Q2 2021 to 17% in the most recent quarter, placing it second overall.
With a share of 21% as opposed to 18%, Samsung won the top rank, partly as a result of shipments of its mid-tier A-series.
Xiaomi, Oppo, and Vivo, three Chinese makers, saw double-digit decreases in shipments, leaving them with shares of 14%, 10%, and 9%, respectively, down from 17%, 11%, and 10% in Q2 2021.
Vendors have reportedly revised their strategies for the remainder of 2022 as a result of “economic challenges, sluggish demand, and inventory” backlogs, according to research analyst Runar Bjorhovde.
“Vendors were forced to review their tactics in Q2 as the outlook for the smartphone market became more cautious,” said Canalys Research Analyst Runar Bjørhovde. “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.”
“Falling demand is causing great concern for the entire smartphone supply chain,” said Canalys Analyst Toby Zhu. “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.”
Canalys’ worldwide Smartphone Analysis service provides a comprehensive country-level view of shipment estimates.