The largest-ever decline in Global smartphone shipments is reported with a decline of 18.3 percent (year-over-year) to 300.3 million units in the single holiday quarter of 2022.
Decline in Global Smartphone Shipments
Further, the Q4 2022 drop contributed to a steep 11.3 per cent decline for the entire year, according to an IDC report.
With shipments of 1.21 billion units, year 2022 ended at the lowest annual shipment total since 2013 due to significantly dampened consumer demand, inflation, and economic uncertainties.
It appears that the tough close to the year puts the 2.8 percent recovery expected for 2023 in serious jeopardy with heavy downward risk to the forecast, as per the report.
Lower Demand In Holiday Quarter
The research director with IDC, Nabila Popal said, “We have never seen shipments in the holiday quarter come in lower than the previous quarter. However, weakened demand and high inventory caused vendors to cut back drastically on shipments,”.
The report further indicated that the Chinese vendors suffered massive losses for the entire year.
Moreover, the heavy sales and promotions during the quarter helped deplete existing inventory rather than drive shipment growth.
Popal added, “Vendors are increasingly cautious in their shipments and planning while realigning their focus on profitability. Even Apple, which thus far was seemingly immune, suffered a setback in its supply chain with unforeseen lockdowns at its key factories in China,”.
According to Anthony Scarsella, another research director with IDC, with 2022 declining more than 11 percent for the year, “2023 is set up to be a year of caution as vendors will rethink their portfolio of devices while channels will think twice before taking on excess inventory.”
