Sales of smartphones decreased in Q2, according to Canalys. Shipments decreased to 287 million units globally. Samsung continued to hold the top spot, while Apple overtook Xiaomi to reclaim second place as Chinese companies failed to meet the declining demand.
Samsung and Apple may have seen annual minor improvements, but the Chinese firms are what are keeping the industry as a whole in the red. The quarter saw a series of lockdowns in China, which disrupted the country’s smartphone market and affected local businesses that are well-established there.
Global Smartphone Shipments in Q2 2022:
As component orders fall and suppliers worry about an overstock, analysts believe that the industry’s top priority will no longer be a supply chain shortage. Companies are being asked to do more in order to adapt and prepare appropriately, including taking steps like making more savings and launching competitive items in the second half.
Demand is expected to remain poor in H2 2022 despite impending releases and festival sales. A strong US dollar’s difficult business circumstances, geopolitical tensions, Chinese businesses’ difficulties in important markets like India, and high global inflation are a few of the main causes.
Regarding the downtrend, Runar Bjørhovde, Canalys Research Analyst said,
“The global smartphone market is suffering a second period of falling shipments after a brief recovery in 2021, and the sudden drop in demand is hitting the leading vendors. Despite 6% annual growth, Samsung’s shipments fell 16% on the previous quarter as the vendor struggled with unhealthy inventory levels, especially in the mid-range.
Samsung is pushing aggressive pricing strategies and heavy promotions for its low-end A series, leveraging the cost-effective ODM production to stimulate consumer demand in the mass market. In the premium segment, Samsung stressed its focus on foldable phones and the S series as profit drivers in developed markets. Meanwhile, solid demand for the iPhone 13 series in North America, China and Europe enabled Apple to grow despite the headwinds. The high end has proven relatively resilient during the recession, while promotions and financing options have helped with affordability.”
