The global smartphone market has seen a decline in the fourth quarter of 2022, according to a new report from Canalys. The report states that worldwide smartphone shipments dropped by 17% YoY in Q4 2022, and the full-year decline is said to be 11%. Fewer than 1.2 billion smartphones were shipped globally in 2022. This marks the worst-performing annual and Q4 in a decade for the smartphone market.
Despite the decline in shipments, the brand rankings remained the same. Apple came in first in the last quarter of 2022, but Samsung led the market overall for the entire year. Xiaomi, Oppo, and Vivo took the third, fourth, and fifth places respectively.
The difficult macroeconomic environment throughout 2022 was a major factor in the decline of smartphone shipments, according to Canalys Research Analyst Runar Bjørhovde. The demand for low to mid-range segments dropped fast in earlier quarters, and even the demand for the high-end category started showing weakness in Q4 2022.
In light of the current market conditions, brands are approaching 2023 cautiously by prioritizing profitability and protecting market share. They are already cutting costs to adapt to the new market reality. A strong relationship between channel partners and vendors will be important to maintain market shares, as per Canalys Research Analyst Le Xuan Chiew.
Canalys forecasts flat to marginal growth for the global smartphone market in 2023. Markets like Western Europe and North America will be affected by economic slowdowns, while some regions in Southeast Asia may grow in the second half of 2023. The report also notes that the market will be closely watched by OEMs as they are cautious regarding the upcoming quarters.
Global smartphone market shipment decline in 2022, not much improvement in coming years either
In conclusion, the global smartphone market has seen a decline in the fourth quarter of 2022 and the full year, with fewer than 1.2 billion smartphones shipped globally in 2022. The brand rankings remained the same, with Samsung leading the market overall for the entire year, followed by Apple, Xiaomi, Oppo, and Vivo.
The difficult macroeconomic environment throughout 2022 was a major factor in the decline of smartphone shipments, and brands are approaching 2023 cautiously by prioritizing profitability and protecting market share. Canalys forecasts flat to marginal growth for the global smartphone market in 2023.
