The decline in worldwide smartphone shipments was also due to a dwindling in Q4 2022 by 18.3% year over year to 300.3 million units.
Heaptalk, Jakarta — Worldwide smartphone shipments decreased sharply by 11.3% in 2022 with total shipments of 1.21 billion units, according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker.
The number represents the lowest annual shipment total since 2013 due to significantly declining consumer demand, inflation, and economic uncertainty. This decline was also contributed by the dwindling in smartphone shipments in Q4 2022 by 18.3% year over year to 300.3 million units. The 2.8% recovery that was expected to occur in 2023 faces the threat of severe downward risk to the forecast.
Research director at IDC‘s Worldwide Tracker team Nabila Popal delivered, “We have never seen shipments in the holiday quarter come lower than the previous quarter. However, weakened demand and high inventory caused vendors to cut back drastically on shipments.”
Further, Nabila said the intense sales and promotions during Q4 2022 helped deplete existing inventory rather than driving growth in shipments. Vendors are becoming more mindful of delivery and planning while realigning their focus on profitability.
Moreover, Apple, which looks powerful, has experienced supply chain disruptions due to lockdowns in China. “Even Apple, which thus far was seemingly immune, suffered a setback in its supply chain with unforeseen lockdowns at its key factories in China. What this holiday quarter tells us is that rising inflation and growing macro concerns continue to stunt consumer spending even more than expected and push out any possible recovery to the very end of 2023,” said Nabila.
Meanwhile, the research director at IDC’s Worldwide Quarterly Mobile Phone Tracker Anthony Scarsella said that consumer demand dwindle as refresh rates rose past 40 months in most major markets.
“With 2022 declining more than 11% 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,” said Anthony.
However, Anthony left a positive note that consumers may find more generous trade-in offers and promotions that will continue into 2023. That way, the market will think of new methods to encourage upgrades and sell more devices, primarily high-end models.
Samsung leads the global smartphone market
Samsung managed to maintain its top position in 2022 with a shipment volume of 260.9 million units, decreasing from 2021 which reached 272.1 million units. Although its shipments fell, Samsung recorded an increased market share to 21.6% from the previous year which was only 20%.
Apple occupied second place with a shipment volume of 226.4 million units in 2022. In the previous year, Apple achieved a larger shipment volume of 235.8 million units. Similar to Samsung, Apple’s market share has also increased from 17.3% in 2021 to 18.8% in 2022.
Xiaomi is in third place with a shipment volume reaching 153.1 million units, a significant decrease from 2021 which reached 191 million units. Xiaomi’s market share also fell from 14% in 2021 to 12.7% in 2022.
Oppo held the fourth position with a shipment volume of 103.3 million units and a market share of 8.6%. Oppo also experienced a decrease in shipments from the previous year which reached 128.3 million units with a market share of 9.4%.
Vivo won the fifth position with a shipment volume of 99 million units in 2022, a decrease from the previous year which reached 128.3 million units. Vivo’s market share has also decreased from 9.4% in 2021 to 8.2 in 2022.
