Amidst the ongoing economic slump, Global smartphone shipments fell 9 percent (year on year) in the second quarter (Q2) this year.
The Q1 leader Samsung is still leading the market but has seen a significant 2 percent drop in Q2, a new report has said.
Apple takes second place with a 17 percent market share as the iPhone 13 remained in high demand, but it has also seen a 1 percent drop in Q2.
Chinese phone makers Xiaomi, OPPO, and Vivo, continued to struggle in China, suffering double-digit declines to take 14 percent, 10 percent, and 9 percent market shares, respectively, according to research firm Canalys.
The decrease in smartphone demands following economic headwinds and regional uncertainty has affected the overall smartphone market supply chain.
“Vendors were forced to review their tactics in Q2 as the outlook for the smartphone market became more cautious,” said Canalys Research Analyst Runar Bjorhovde.
Economic flurry, sluggish demand, and inventory pileup have resulted in vendors rapidly reassessing their portfolio strategies for the rest of 2022.
“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,” he added.
“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,” said analyst Toby Zhu.
In upcoming days, sellers will rush into smartphone sales by using promotions and offers ahead of new launches during the holiday season to reduce the channel’s liquidity pressure.
But in contrast to last year’s rapid increase in demands, consumers’ discretionary expenses have 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,” Zhu added.