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Africa|Environment|Equipment
Africa|Environment|Equipment
africa|environment|equipment

Smartphone shipments slide for fifth consecutive quarter

18th November 2022

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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Global smartphone shipments registered the largest third-quarter decline to date – and the fifth consecutive quarterly contraction – amid weakened global demand and economic uncertainties.

According to preliminary data from the International Data Corporation’s (IDC’s) Worldwide Quarterly Mobile Phone Tracker, smartphone shipments recorded a year-on-year decline of 9.7% to 301.9-million units during the third quarter of 2022.

“A majority of the decline came from emerging markets where lack of demand, rising costs and inflation impacted consumers with lesser disposable incomes,” explains IDC Worldwide Tracker team research director Nabila Popal.

“With high inventory coming into the quarter, shipments and orders by original-equipment manufacturers were further reduced in an attempt to deplete inventory. Although Chinese vendors continue to suffer the most, all vendors were impacted on, including Samsung and Apple,” she says of the third-quarter shipments.

During the second quarter of 2022, worldwide smartphone shipments had declined 8.7% year-on-year to 286-million units, about 3.5% lower than forecast.

In September, the IDC warned that record-breaking inflation, geopolitical tensions and other macroeconomic challenges that have significantly dampened consumer demand will lead to an expected 6.5% decline in the shipments of smartphones to 1.27-billion units in 2022.

Popal comments that the only vendor that delivered positive growth during the quarter under review was Apple; however, it still faced challenges as its growth was stunted in many markets, including China, owing to the poor macroeconomic situation.

Despite the challenging environment, vendor positioning was maintained.

Samsung maintained the top position during the third quarter of 2022, with 64-million shipments and a 21.2% market share, representing a year-on-year 7.8% decrease on the 69.5-million units shipped and 20.8% market share in the third quarter of 2021.

Apple once again maintained the second position with 51.9-million units shipped and a 17.2% market share after a 1.6% year-on-year growth. This is compared with the shipment of 51.1- million units and a market share of 15.3% in the comparative period last year.

China’s Xiaomi registered in the third position, with 40.5-million units shipped and 13.4% market share, a 8.6% contraction on the 44.3-million shipments and 13.3% market share in the corresponding quarter last year.

However, while Samsung and Xiaomi registered single-digit declines, vivo and OPPO, which ended the quarter tied for fourth position, continued to suffer high double-digit decreases.

Vivo shipped 25.9-million units, claiming a 8.6% market share, a 21.1% decline on the 33.3-million units and 10% market share reported in the third quarter of 2021.

OPPO shipped 25.8-million units, with a 8.6% market share, which is a 22.3% decline on the 33.2-million units and 9.9% market share in the third quarter of 2021.

“Looking to 2023, the market's expected recovery, which we continue to believe will happen, will be pushed further into the year. Moreover, we now expect a steeper shipment decline for 2022 and a softer recovery in 2023,” Popal points out.

All regions, except for Central and Eastern Europe, are expected to decline in third quarter of 2022 and for the entire year.

China is expected to remain relatively unchanged at a decline of just over 12% for the quarter, while developed markets, such as North America, Western Europe and Japan, will experience low to mid-single-digit declines.

Emerging markets in Asia Pacific, Latin America, the Middle East and Africa are expected to experience more significant double-digit declines.

However, there are “unique dynamics” unfolding regarding smartphone sales worldwide, adds IDC Worldwide Mobile and Consumer Device Trackers group VP Ryan Reith.

“Developed markets that often sell more premium devices are faring better than emerging markets where smartphones sell for a fraction of the cost. We believe this is largely supported by the expansion of instalment plans offered through telecommunications groups, retail channels and even direct from vendors.”

“Promotional activity around trade-in offers also supports that shift. However, as we look toward next year and beyond, if the global market is going to grow, it will need a strong recovery in emerging markets to make that happen,” he concludes.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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