Canalys Newsroom – Weak demand caused a 9% drop in the global smartphone market

Canalys Newsroom – Weak demand caused a 9% drop in the global smartphone market

Canalys’ latest smartphone analysis indicates that weak demand in the third quarter of 2022 caused worldwide smartphone shipments to decline 9% year-on-year to 297.8 million units. Samsung defended its first place in the market despite an 8% drop, selling 64.1 million units. Apple, the only leading supplier to increase year-over-year fueled by strong demand, grew 8% and shippedd 53.0 metermillion units. After two quarters of double-digit declines, Xiaomi leveraged its global scale to find opportunities that helped strengthen its position to decline just 8%, shipping 40.5 million units. OPPO and vivo ranked fourth and fifth despite falling over 20%, shipping 28.5 million and 27.4 million units respectively in Q3 2022.

“The performance of the high-end segment was the only highlight this quarter,” said Runar Bjørhovde, a research analyst at Canalys. “Apple achieved its highest third-quarter market share yet, driven by both the iPhone 13 and the recently launched iPhone 14 series. The popularity of the iPhone 14 Pro and Pro Max, in particular, will contribute to higher ASP and stable revenue for Apple. On the Android side, Samsung updated its foldable portfolio and significantly increased its marketing initiatives to generate interest and demand for its new flagships. Mid-to-low-end demand has been affected, making it difficult for providers to navigate a competitive segment. Xiaomi managed to capitalize on its global scale with a revamped product lineup to offset declines in its home market. OPPO and vivo are still significantly affected by the Chinese market downturn, but both have shown small signs of recovery.

Global Smartphone Market Shipments, Q3 2022

“Europe and Asia Pacific outperformed the rest of the world in the third quarter,” said Canalys analyst Sanyam Chaurasia. “Europe avoided a significant drop helped by a surge in shipments to Russia. Here, Chinese suppliers took advantage of short-term opportunities to supply the channel in a market that has been under-supplied in previous quarters. APAC had wide variation across markets, but sequential improvement in demand in India, Indonesia and the Philippines helped the region stabilize its performance. Carrier-dominated markets such as North America and Latin America exhibited increasingly cautious sentiments on inventory management ahead of heading into the big holiday seasons, contrasting with a much more optimistic view in the third quarter of the year. past”.

“As we move into the fourth quarter, ongoing global disruptions are hampering the performance of entire ecosystem portfolios for providers,” said Toby Zhu, an analyst at Canalys. “The upstream supply chain is entering a long winter earlier than expected, where OEM order targets are slashed drastically. Additionally, slow inventory turnover and poor economic numbers have affected channel confidence, with it falling to major brands with iconic devices to drive traffic for the biggest revenue quarter. Suppliers are entering the fourth quarter with cautious strategies to manage persistent difficulties. Managing the bleakest fourth quarter outlook in more than a decade will show which providers are well positioned for the long term.”

All over the world smartphone shipments and annual growth

Pulse of the Canalys smartphone market: Q3 2022

Seller

Q3 2022 shipments (millions)

Q3 2022
market
Share

Q3 2021
shipments (millions)

Q3 2021
market
Share

Annual
increase

Samsung

64.1

22%

69.4

22%

-8%

Apple

53.0

18%

49.2

sixteen%

8%

xiaomi

40.5

14%

44.0

14%

-8%

OPPO

28.5

10%

36.7

12%

-22%

alive

27.4

9%

34.2

eleven%

-twenty%

Others

84.3

27%

92.1

25%

-6%

Total

297.8

100%

325.6

100%

-9%

Note: Percentages may not add to 100% due to rounding.
Source: Canalys Smartphone Analysis (shipments sold), October 2022

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For more information, contact:

Runar Bjorhovde: runar_bjorhovde@canalys.com +44 7787 290115
Sanyam Chaurasia:sanyam_chaurasia@canalys.com +91 89820 33054
Toby Zhu: toby_zhu@canalys.com +86 150 2674 3017

About smartphone analytics

Canalys around the world Smartphone analysis service provides a comprehensive country-level view of shipping estimates much sooner than our competitors. We provide quarterly market share data, timely tracking of historical data, detailed analysis of storage, processors, memory, cameras, and many other specifications. We combine detailed global statistics for all categories with Canalys’ unique data on shipments through tier one and two channels. The service also provides a single view of end user types. At the same time, we provide regular analysis to provide insights into the data, including the assumptions behind our forecast outlook.

About Canalys

Canalys is an independent research firm that strives to guide clients on the future of the technology industry and think beyond the business models of the past. We provide intelligent market insights to service provider, channel and IT professionals around the world. We stake our reputation on the quality of our data, our innovative use of technology, and our high level of customer service.

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