Worldwide smartphone shipments experienced the largest decline in a single quarter during the last three months of 2022, preliminary data from market intelligence and advisory services firm International Data Corporation (IDC) shows.

During the fourth quarter of 2022, global smartphone shipments fell 18.3% year-on-year to 300.3-million units.

This contributed to a yearly decline of 11.3%, which saw the year ending with shipments of 1.21-billion units – the lowest yearly shipment total since 2013 – owing to significantly dampened consumer demand, inflation and economic uncertainties, according to the firm’s Worldwide Quarterly Mobile Phone Tracker.

“This tough close to the year puts the 2.8% recovery expected for 2023 in serious jeopardy with heavy downward risk to the forecast. We have never seen shipments in the holiday quarter come in lower than the previous quarter,” says IDC Worldwide Tracker research director Nabila Popal.

She points out that weakened demand and high inventory caused vendors to scale back drastically on shipments, with heavy sales and promotions during the fourth quarter of 2022 helping to deplete existing inventory rather than drive shipment growth.

“Vendors are increasingly cautious in their shipments and planning while realigning their focus on profitability,” she explains, adding that Apple, which was seemingly immune, suffered a setback in its supply chain with unforeseen lockdowns at its key factories in China.

“What this holiday quarter tells us is that rising inflation and growing macro concerns continue to stunt consumer spending even more than expected and push out any possible recovery to the very end of 2023.”

“With 2022 declining more than 11% for the year, 2023 is set up to be a year of caution as vendors will rethink their portfolio of devices, while channels will think twice before taking on excess inventory,” adds IDC Worldwide Quarterly Mobile Phone Tracker research director Anthony Scarsella.

During the fourth quarter of 2022, Apple held the top spot with shipment volumes of 72.3-million and a market share of 24.1%, a 14.9% contraction on the 85-million units and market share of 23.1% in the fourth quarter of 2021.

However, for 2022, Apple secured the second position overall, with 226.4-million units shipped, equating to a market share of 18.8%, which was a 4% decline on the reported 235.8-million units shipped, and a market share of 17.3%, in 2021.

Samsung, in second place during the fourth quarter of 2022, reported 58.2-million units shipped and a 19.4% market share, representing a year-on-year decrease of 15.6% on the 69-million units shipped and 18.8% market share in the fourth quarter of 2021.

For the full year, however, Samsung secured the top spot with 260.9-million units shipped and a market share of 21.6%, compared with 272.1-million units and a market share of 20% in 2021, a 4.1% decline.

China’s Xiaomi registered in the third position, with 33.2-million units shipped and an 11% market share during the fourth quarter of 2022, a 26.3% contraction on the 45-million units shipped and a 12.2% market share in the corresponding quarter last year.

Xiaomi recorded full-year shipments of 153.1-million and a 12.7% market share for 2022. This is a 19.8% contraction on the 191-million units shipped and a 14% market share reported in the preceding year.

OPPO shipped 25.3-million units, with a 8.4% market share in the fourth quarter of the year under review, which is a 15.9% decline on the 30.1-million units and 8.2% market share in the fourth quarter of 2021.

Overall in 2022, OPPO shipped 103.3-million units, claiming an 8.6% market share, a 22.7% decline, compared with the 133.6-million units shipped, with a market share of 9.8%, in 2021.

During the fourth quarter of 2022, Vivo shipped 22.9-million units, claiming a 7.6% market share, a 18.9% decline on the 28.3- million units and 7.7% market share reported in the corresponding quarter of 2021.

In 2022, Vivo shipped 99-million units, with a markets share of 8.2%, representing a 22.8% drop on the 128.3-million units shipped, with a market share of 9.4% in 2021.

Other brands collectively shipped 88.3- million units, with a market share of 29.4% in the fourth quarter of 2022, compared with the 110.2-million units shipped, with a 30% market share in the comparative period last year, representing a decline of 19.8% year-on-year.

For the full year, these vendors collectively accounted for 362.7-million units shipped, at a 30.1% market share, equating to a 9.1% decline on 2021’s shipments of 399.1-million, and a market share of 29.3%.

Scarsella points out that, more positively, consumers may find even more generous trade-in offers and promotions continuing well into 2023 as the market will think of new methods to drive upgrades and sell more devices, specifically high-end models.

According to the IDC’s latest worldwide used smartphone forecast for the period 2022 to 2026, 413.3-million used smartphones will be shipped worldwide by 2026 – with a market value of $99.9-billion – at a compound annual growth rate of 10.3% from 2021 to 2026.

The group estimated that worldwide shipments of used smartphones, including officially refurbished and used smartphones, had reached 282.6-million units in 2022, an 11.5% increase over the 253.4-million units shipped in 2021.

“Trade-in programmes continue to be the driving factor for the new and used smartphone market globally. We have witnessed new programmes launch successfully across multiple regional markets where trade-in is still a new concept for local consumers.

“The used market was able to grow 11.5% in 2022, thanks to the 6.1% rebound we witnessed in the new market for 2021.

“Used devices demonstrate more resilience to market inhibitors than new smartphone sales as consumer appetite remains elevated in many regions,” he says.