Canalys is attributing this decline to “economic headwinds, sluggish demand and inventory pileup”. Soaring inflation has resulted in lower disposable income globally. As such, spending on smartphones has dropped. Regional issues, such as the Russia-Ukraine war and coronavirus lockdowns in China, have also affected the smartphone industry this past quarter.
Samsung continues to capture the top spot
Samsung has been the world’s largest smartphone company for the longest. The Korean behemoth maintained its spot up top in Q2 2022. It captured 21 percent of the global market between April and June. The company had an 18 percent share of the market during the same period last year. So it managed to grow amid a global slowdown. According to the new report, Samsung witnessed strong sales of its low-end Galaxy A series devices this past quarter, helping it register a YoY growth. Economic uncertainties usually affect the mid-range segment the most as budget-constrained buyers shift to more affordable products. The company capitalized on this opportunity. Of course, Samsung also makes mid-range smartphones. Perhaps it is struggling to clear its mid-range Galaxy A and Galaxy M series inventory. But the company has products across a wide price range and this helps it remain afloat during these kinds of slowdowns. Apple also saw a YoY growth in market share over the past three months. The iPhone maker sits at the second spot with a 17 percent market share, up from 14 percent a year earlier. It had lost that spot to Xiaomi in Q2 2021. The two companies have not only swapped positions in Q2 2022 but also the market share. Xiaomi now captures 14 percent of the market, down from 17 percent during the same period last year. OPPO (including OnePlus) and Vivo also suffered double-digit YoY declines in shipment in Q2 2022. The Chinese duo now capture 10 percent and nine percent of the market, respectively. This marks a one percentage point drop from last year for both companies. “Falling demand is causing great concern for the entire smartphone supply chain,” said Canalys analyst Toby Zhu. “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.”
