© IE Online Media Services Pvt Ltd
Tags:
Journalism of Courage
The global smartphone market witnessed its biggest shrink in this decade, declining 17% year on year in the final quarter of 2022 owing to a “difficult macroeconomic environment.” The analysis by Canalys also reveals that full-year shipments meanwhile fell to below 1.2 billion, registering a decline of 11%.
Apple reclaimed the top spot in the fourth quarter, achieving its highest quarterly share ever at 25% even in the face of shrinking demand and manufacturing issues in Zhengzhou.
Samsung finished second with a 20% share but was in the top spot for the longest, thereby winning the title of the largest vendor for the full year.
Moving on to the Chinese players, Xiaomi’s market share fell to 11% in Q4 largely due to challenges in India, but the company retained third place. Meanwhile, Oppo’s and Vivo’s market share remained relatively flat, with the companies taking 10% and 8% market shares respectively.
Due to the looming market uncertainties and low shipments, companies are highly cautious about taking on new inventory. The holiday season sales did help reduce inventory levels, though, according to Canalys.
“Vendors will approach 2023 cautiously, prioritizing profitability and protecting market share,” said Canalys Research Analyst Le Xuan Chiew. “Vendors are cutting costs to adapt to the new market reality. Building strong partnerships with the channel will be important for protecting market shares as difficult market conditions for both channel partners and vendors can easily lead to strenuous negotiations.”
Market projections don’t look very rosy for 2023 either, with Canalys forecasting flat to marginal growth for the smartphone market during the year.
“Though inflationary pressures will gradually ease, the effects of interest rate hikes, economic slowdowns and an increasingly struggling labour market will limit the market’s potential,” added Chiew.
These factors will negatively impact mid-to-high-end-dominated markets, such as Western Europe and North America. Not all regions will be seeing downward trends, though, as Canalys says that Southeast Asia will see growth thanks to “economic recovery and a resurgence of tourism in China helping to drive business activities.”
