Worldwide smartphone shipments have declined for the third consecutive quarter, falling 8.9% year-on-year in the first quarter of 2022.
Preliminary data from the International Data Corporation’s (IDC’s) Worldwide Quarterly Mobile Phone Tracker show shipments declined to 314.1-million units in the quarter, about 3.5% lower than IDC’s February forecast.
“Although some decline was expected in the first quarter of 2022, owing to the ongoing supply and logistical challenges and a difficult year-on-year comparison, things seemed to have taken a turn for the worse,” says IDC research director Nabila Popal, highlighting the negative sentiment, with concerns around inflation and economic instability that have dampened consumer spending, across all regions, particularly China.
She further points to the rising costs of components and transportation, the recent lockdowns in Shanghai, which are exacerbating an already difficult situation, and the Russian invasion of Ukraine, which immediately impacted on that region and continues on an unknown trajectory.
“Given all these uncertainties, most original-equipment manufacturers (OEMs) are adopting a more conservative growth strategy for 2022.”
While the Central and Eastern Europe (CEE) region was down close to 20% during the quarter, and the outlook for many of those markets remains uncertain, from a volume standpoint, CEE only accounts for 6% to 7% of global shipments and about 5% of market revenue.
The biggest impact on global volumes emerged from China and other parts of Asia and the Pacific, which account for nearly half of all shipments worldwide.
“It goes without saying that the world continues to face numerous challenges, whether it be geopolitical, pandemic related, or macroeconomic. Almost everything that has happened in recent months has been a headwind on the smartphone market and, realistically, many other technology segments,” adds IDC Worldwide Mobile Device Trackers group VP Ryan Reith.
“Our research tells us Samsung and Apple have navigated the supply chain situation a bit better than their competitors and, as a result, we have seen reduced orders from the next set of top OEMs.”
However, IDC believes that any diminished demand will not be “lost”, but rather pushed forward.
“It is just a matter of when that demand resumes.”
During the first quarter of 2022, Samsung maintained the top position with 73.6-million units shipped and a 23.4% market share – its largest share in any given quarter since the first quarter of 2018 – compared with shipments of 74.5-million and a market share of 21.6% in the first quarter of 2021.
Apple, meanwhile, secured the second position with 56.5-million units shipped and a 18% market share after a 2.2% year-on-year growth. This is compared with the shipment of 55.3-million units and a market share of 16% in the comparative period last year.
Chinese vendors Xiaomi, OPPO and Vivo followed in the next three positions during the first quarter of the year.
Xiaomi shipped 39.9-million units, claiming a 12.7% market share, a 17.8% decline on the 48.6-million units and 14.1% market share reported in the first quarter of 2021.
OPPO shipped 27.4-million units, with a 8.7% market share, which is a 26.8% decline on the 37.5-million units and 10.9% market share in the first quarter of 2021, followed by Vivo, which shipped 25.3-million units, and secured a 8.1% market share, a 27.7% decline on the 35-million units and 10.1% market share in the first quarter of 2021.