The latest International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker shows that smartphone shipments continue to decline amid global uncertainty and softening demand.
Worldwide smartphone shipments declined 8.7% year-on-year to 286-million units in the second quarter of 2022, about 3.5% lower than forecast and marking the fourth consecutive quarter of decline for the smartphone market.
“What started out as a supply-constrained industry earlier this year has turned into a demand-constrained market. While supply improved as capacity and production ramped up, roaring inflation and economic uncertainty have seriously dampened consumer spending and increased inventory across all regions,” says IDC Worldwide Tracker research director Nabila Popal.
Original-equipment manufacturers have cut back on orders for the rest of the year, with Chinese vendors making the biggest cuts as their largest market continues to struggle.
“Although we do expect demand to start picking up in some regions towards the end of the year, the outlook for the 2022 smartphone market will definitely be revised down a few points. We continue to believe that any reduction today is not demand that is lost, but simply pushed forward.”
During the second quarter of the year, the largest decline was in Central and Eastern Europe (CEE), declining 36.5% year-on-year, the war in Ukraine.
CEE, however, accounts for only 6% of global shipments.
The largest impact emerged from China, which declined 14.3% year-on-year.
Asia Pacific, excluding Japan and China, which accounts for nearly half of all shipments worldwide, also declined 2.2% in the second quarter, while all other regions, except Canada, recorded low to mid single-digit declines.
Despite the challenging environment, vendor positioning was maintained.
During the second quarter of 2022, Samsung maintained the top position with 62.4-million shipments and a 21.8% market share, representing a year-on-year increase on the 59.1- million units shipped and 18.9% market share in the second quarter of 2021.
However, this is a decline on the 73.6- million units shipped and a 23.4% market share recorded in the first quarter of 2022.
Apple maintained the second position with 44.6-million units shipped and a 15.6% market share after a 0.5% year-on-year growth. This is compared with the shipment of 44.4- million units and a market share of 14.2% in the comparative period last year.
China’s Xiaomi registered in the third position, with 39.5-million units shipped and 13.8% market share, a 25.5% contraction on the 53.1-million shipments and 16.9% market share in the corresponding quarter last year.
OPPO and Vivo ended the quarter tied for the fourth position.
Vivo shipped 24.8-million units, claiming a 8.7% market share, a 21.8% decline on the 31.7-million units and 10.1% market share reported in the second quarter of 2021.
OPPO shipped 24.7-million units, with a 8.6% market share, which is a 24.6% decline on the 32.8-million units and 10.5% market share in the first quarter of 2021.