The global smartphone market has shrunk the most this decade with a 17% year on year decline in the final quarter of 2022 owing to a “difficult macroeconomic environment.”
Major smartphone brands
Analysis by Canalys also reveals that full-year shipments fell to below 1.2 billion, registering a decline of 11%.
Apple reclaimed the top spot in the fourth quarter by achieving its highest quarterly share ever at 25% despite shrinking demand and manufacturing issues in Zhengzhou.
Samsung came in second with a 20% share but stayed on top for the longest, thereby winning the title of the largest vendor for the full year.
On to the Chinese players, Xiaomi’s market share fell to 11% in Q4 largely due to challenges in India, but it retained third place.
Oppo’s and Vivo’s market share remained relatively flat with 10% and 8% market shares respectively.
2023 Projections
Companies are more cautious now about taking on new inventory due to the looming market uncertainties and low shipments.
“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.”, ended the statement.
Pessimistic outlook
Market projections don’t look positive 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.
However, not all regions will be seeing downward trends.
Canalys projects that Southeast Asia will see growth thanks to “economic recovery and a resurgence of tourism in China helping to drive business activities.”
