According to Omdia, smartphone shipments totaled 265,9 million units in the second quarter of 2023. This represents a decline of 9.5% compared to the previous year and a decrease of 1.2% compared to the previous quarter. This is the eighth consecutive quarter of year-on-year decline in overall smartphone shipments.
The three largest OEMs, Apple, Samsung and Xiaomi, all saw their shipments fall more than 10% from 2Q22 to 2Q23.
Samsung had the most shipments in 2Q23, reporting 53.3 million shipments. This is a 11.5% dip from 1Q23, following the release of the S23-series, but more worryingly is a 14.3% fall year-on-year. This result follows the weak demand for mid/low-end smartphones due to the ongoing economic recession, and sales of Samsung’s Galaxy A series significantly declining. Despite this, Samsung smartphones maintained its market share of 20%, and its position as the largest player in the smartphone industry.
Apple had a big quarter-on-quarter fall following a successful 1Q23 for its iPhone 14 series. It recorded 43.2 million shipments, a 24.6% fall from 1Q23 and a 11.7% fall year-on-year from 2Q22. As such, Apple’s market share has fallen back down to its usual level for the second quarter of each year, at 16%. While it previously seemed that Apple was more resilient to the negative down-winds of the economy, it has now begun to feel the squeeze.
“Apple has strong sales of premium models such as the iPhone 14 Pro and Pro Max, while the standard and Plus models sluggish sales compared to their predecessors. Normally, from the second quarter, the standard model should drive up the overall quantity, but this year it is different. Demand for Pro and Pro Max is increasing, especially among high-income consumers.” said Jusy Hong, Senior Research Manager at Omdia.
Xiaomi’s shipments continue to fall globally, falling to 33.2 million, a 15.7% fall year-on-year – from 39.4 million in 2Q22. It still occupies the third spot globally but is facing stiff competition from other Chinese OEMs Oppo and vivo. The weak Indian market remains a problem for Xiaomi, as their biggest market. However, it is further establishing itself in Western Europe, something many other Chinese brands have failed to do.
Oppo Group (including OnePlus) recorded 25.0 million shipments in 1Q23, a fall of 10.5% from the previous year. This fall isn’t as far as Xiaomi’s and as a result, Xiaomi’s lead over Oppo Group has diminished from 11.5 million in 2Q22 to just 8.3 million in 2Q23.
Transsion Holding has recorded a combined total of 24.5 million – a 38.4% increase year-on-year from the 17.7 million shipped in 2Q22. This pushes Transsion Holdings ahead of vivo to be the fifth largest smartphone OEM in 2Q23, coming after a period of long stagnation as it was digesting the inventories from 1Q23. Its efforts to expand into more markets is also proving successful.
Zaker Li, Omdia Principal Analyst says, ‘The main reason for the increase in shipments was that Transsion completed inventory adjustment in the first quarter this year and increased supply of new products from 2Q. Transsion is targeting the low-end smartphone market in more countries in Asia and Oceania.’
Hong concludes: “The smartphone industry remains in a slump, and we are expecting the market to contract year-on-year until 3Q23. But there is hope for a recovery in the fourth quarter this year. Apple and Samsung have both faced challenges and have revised their targets down as a result. But these problems will ease come the end of the year and into 2024. Inflation and the resulting squeeze on wage packets and the economy is already easing globally, and high inventory levels is already being tackled by many OEMs. The growing popularity of recycled smartphones is hindering the growth of new smartphone shipments. In particular, it is the main reason for the recent decline in demand in the mid-range smartphone market. Overall shipment forecasts for this year have been revised down over the past several months. However, we expect the smartphone shipments will also recover as the economy recovers.”
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