Waning demand and economic headwinds are negatively impacting the global smartphone market, shows data from Canalys, the Singapore-based research firm. According to Canalys’ latest report, the global smartphone market fell 9 per cent year-on-year (YoY) in the second quarter of the year.
“Vendors were forced to review their tactics in Q2 as the outlook for the smartphone market became more cautious. Economic headwinds, sluggish demand and inventory pileup have resulted in vendors rapidly reassessing their portfolio strategies for the rest of 2022,” said Canalys Research Analyst Runar Bjørhovde in a press statement.
He also noted that 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.”
According to Canalys Analyst Toby Zhu, the falling demand should be a cause of concern for the entire smartphone supply chain. “While component supplies and cost pressures are easing, a few concerns remain within logistics and production, such as some emerging markets’ tightening import laws and customs procedures delaying shipments,” he said.
“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 added.
In terms of individual vendors, Samsung remained on top with a 21 per cent market share driven by its lower-end A series supply. Apple was second with a 17 per cent share as the iPhone 13 remained in high demand. Xiaomi, OPPO and vivo continued to struggle in China, suffering double-digit declines to take 14%, 10% and 9% market shares respectively, showed Canalys.