2022 has not been a good year for the global smartphone market, with reports of the demand for new phones significantly dropping, especially in the entry-level to midrange section of the market. In their final report of the year, Canalys, an analyst company, has provided figures for Q4 2022 which paints an even more grim picture for the smartphone industry.
Figures from the analyst firm indicate that smartphone shipments fell 17% year-on-year in Q4 2022. Adding the other quarter’s shipments, the result is an 11% drop in smartphone shipments for the year 2022 compared to 2021 figures. This has led to Canalys referring to 2022 as, “an extremely challenging year for all vendors”.
To put in perspective just how bad the performance was in Q4 2022, you have to go back almost 10 years to get lower figures, “we have to go back to 2013 to find lower numbers — and back then the market situation was very different as the technology was a lot more emerging,” Canalys explains.
In terms of individual company performance, Apple had the biggest market share in Q4 2022 at 25%, up from 23% in the same period last year, while Samsung captured 20% of the market in second place, up from 19%. The biggest loser was Xiaomi at 11%, down from 13% while Vivo matched the 8% it managed last year. The rest of the brands cumulatively also saw their market share decline from 28% to 26%.
Interestingly, despite losing out in Q4, Samsung still managed to beat Apple in market share for the whole year at 22%, Apple came in second at 19% with the rest of the top five being locked up by Xiaomi with 13%, and OPPO and Vivo with 9% each.
With reduced demand for new smartphones, suppliers are extremely reluctant in taking up new inventory, reports Canalys. However, the offers and promotional incentives during the holiday season helped a bit in reducing their inventory levels. The firm explains that while low to midrange demand fell in the previous quarter, there are now signs that the high-end demand is getting a bit shaky.
As to what 2023 promises, Canalys does not expect much of a comeback, predicting the growth will be flat to marginal. External factors in the biggest markets in North America and parts of Europe including high-interest rates, unemployment and inflation will slow the market, while China’s reopening process might offer a small glimmer of hope for the industry.
