Global smartphone shipments fell to 28.7 million units in the second quarter, a sharp 9 per cent drop, as component orders were sharply cut and suppliers began to worry. This information has been given in a report by Canalis.
Global smartphone figures in the second quarter are the lowest quarterly figures since the second quarter of 2020 (when the pandemic first hit).
Samsung shipped 61.8 million smartphones and leads the market with a market share of 21 per cent.
Despite the weak season, Apple remained in second place, shipping 49.5 million iPhones for a 17 percent market share.
Xiaomi stood third with 3.96 million units, while Oppo and Vivo made it to the top five with 2.73 and 254 million units, respectively.
According to analyst Toby Zhu, sellers can use the additional savings to improve product competitiveness of new launches in the second half of the year.
“At the same time, getting rid of older models can be even more difficult. The oversupply situation is driving more demand than a period of lack of vendors’ plan capabilities,” Zhu said.
After a brief recovery in 2021, the global smartphone market is suffering from a second period of falling shipments and a sudden drop in demand is affecting major vendors.
“Despite an annualized growth of 6 per cent, Samsung’s shipments declined 16 per cent last quarter as the seller struggled with unhygienic inventory levels, especially in the mid-range,” said research analyst Runner Björhovde.
Meanwhile, solid demand for the iPhone 13 series in North America, China and Europe has enabled Apple to grow despite the odds.
“The high end has proven relatively resilient during recessions, while promotion and financing options have helped with affordability,” Björhovde said.
Going forward, tensions in the entire smartphone supply chain will increase, as the weakness in demand is likely to continue for a longer period of time.