BY Onome Amuge
The global smartphone market suffered a consecutive decline in the second quarter of 2022 as economic headwinds and regional uncertainty impacted smartphone shipments which dropped 9 per cent year-on-year, according to preliminary data from leading tech market research firm Canalys.
Chinese manufacturers Xiaomi, Oppo and Vivo suffered double-digit declines in shipments, leaving them with shares of 14 per cent, 10 per cent and 9 per cent, respectively, compared with 17 per cent, 11 percent and 10 per cent recorded in the corresponding quarter of 2021.
Despite the negative result, Canalys noted that Apple’s iPhone 13 and Samsung remained in high demand as Samsung, supported by massive shipments of its lower-tier models, occupied the top spot with a 21 per cent year-on-year rise in shipment compared with 18 per cent in Q2 2021.
Meanwhile, the iPhone 13 brand was ranked second overall in shipment quantity, boosting Apple to a 17 per cent share in the period under review, compared to 14 per cent in Q2 2021.
Commenting on the report, Runar Bjorhovde, Canalys research analyst, explained that economic headwinds, sluggish demand and inventory backlogs resulted in vendors reassessing their strategies for the rest of 2022.
“The oversupplied mid-range is an exposed segment for vendors to focus on adjusting new launches, as budget-constrained consumers shift their device purchases toward the lower end,” Bjorhovde added.
Toby Zhu, another analyst at the research firm noted that consumers’ disposable income was impacted by soaring inflation in the year.
Zhu, however, expects vendors to accelerate promotions and special offers to “accelerate sell-through” ahead of launches during the holiday selling period.
“In the near term, vendors will look to accelerate sell-through using promotions and offers ahead of new launches during the holiday season to alleviate the channel’s liquidity pressure. But in contrast to last year’s pent-up demand, consumers’ disposable income has been affected by soaring inflation this year. Deep collaboration with channels to monitor the state of inventory and supply will be vital for vendors to identify short-term opportunities while maintaining healthy channel partnerships in the long run,” he stated.