Smartphone market shows resilience with a 12% decline in Q1 2023
In Q1 2023, the worldwide smartphone market fell for the fifth straight quarter, falling 12% year on year. Samsung is the only brand with a pulse and a quarter-on-quarter recovery.
Worldwide economic difficulties have affected almost every industry, including technology and mobile phones, in particular. Canalys shared a report on how mobile phone companies performed in the first quarter of 2023. According to the report, the worldwide smartphone market has faced another fall, this time 12%, but the future might be bright.
"The smartphone market's decline in the first quarter of 2023 was within expectations throughout the industry. The local macroeconomic conditions continued to hinder vendors' investments and operations in several markets. Despite price cuts and heavy promotions from vendors, consumer demand remained sluggish, particularly in the low-end segment due to high inflation affecting consumer confidence and spending," said Canalys Analyst Sanyam Chaurasia.
As seen in the graph provided by Canalys, global smartphone shipments fell 12% in the first quarter of 2023. It isn't surprising because we were expecting something close to this graph because of the current economic conditions. It was within expectations, as Chaurasia also mentioned. It has also affected the component supply chain in the long run.
Apple improves from 18% to 21%
Xiaomi is right after Apple, with an 11% market share. The Asian company's market share fell by 2% but didn't change its place among other giants. Oppo is following Xiaomi with a 10% market share, slightly better than their market share in the first quarter of 2022. Vivo is fourth on the list, holding its 8% market share from last year. Other smartphone companies share the remaining 28%.
Brands have also decreased their production volumes due to low demand. The first goal is to clear the existing inventories, and mass production will continue at its previous pace if ever the world economy returns to where it was a couple of years ago. The first recovery signs are expected to start in the second quarter of 2023.Advertisement