IDC Q3 2022 Global Smartphone Sales Slowdown Samsung Xiaomi Apple Vivo Oppo

IDC Q3 2022 Global Smartphone Sales Slowdown Samsung Xiaomi Apple Vivo Oppo

It’s not the time to be a smartphone brand – unless you have a fruity name based in Cupertino. This is what emerged from the latest report on the global smartphone market issued by a leading research agency. Apple was the only major brand to post growth even as smartphone shipments continued their downward trend this year, with the likes of Samsung, Xiaomi, Oppo and Vivo all declining. So, what was the global smartphone market like in the third quarter of 2022? Here are the highlights of the IDC Worldwide Quarterly Mobile Phone Tracker report for the period.

A record decline in the global smartphone market

According to the report, global smartphone shipments in the third quarter of 2022 amounted to 301.9 million units, compared to 334.2 million units in the same quarter last year.

This represented a year-on-year decline of 9.7 percent, the largest ever decline in the third quarter in the global smartphone market.

According to IDC, most of the decline stemmed from emerging markets, where “a lack of demand, rising costs, and inflation affecting consumers with lower disposable incomes.”

Declined for the fifth consecutive quarter

The slowdown in the global smartphone market is not an aberration. This is the fifth consecutive quarter in which smartphone shipments have declined year-over-year.

They declined by 8.7% in the second quarter of 2022, 8.9% in the first quarter of 2022, 3.2% in the fourth quarter of 2021, and 6.7% in the third quarter of 2021. In fact, smartphone shipments in The third quarter of 2020, worth $353.6 million.

Many took this as an indication that the market was shifting and recovering from the initial shock of COVID, a belief bolstered by the impressive growth and numbers in the fourth quarter of 2020.

However, things are not quite so rosy now.

All is well … only in Central and Eastern Europe, and things are bad in China and developing markets

According to the International Data Center, all regions are expected to post declines not just for the third quarter of 2022 but for the entire year. The only regions that will grow are Central and Eastern Europe.
China posted a 12 percent drop, and emerging markets in Asia/Pacific, Latin America, the Middle East, and Africa are also expected to see a significant double-digit slowdown, although developed markets such as North America, Western Europe and Japan will not post a sharp decline (Figure 1). One).

According to the report, developed markets selling premium devices in larger numbers do better than emerging markets selling smartphones at lower and more competitive prices. Sales of premium phones are stimulated by better plans from carriers and retail channels as well as special offers.

However, according to the International Data Center, the global market can only grow if emerging markets experience a strong recovery. But it is not clear when this will happen (see last point).

The ratings are still the same – Samsung still ranks #1

The top five brands in the global smartphone market have not changed since Huawei left the top smartphone brand at the end of 2020.

Ironically, Huawei was briefly number one for a very short time in 2020 in the early days of the pandemic. The top five brands in the global smartphone market since 2021 are Samsung, Apple, Xiaomi, Vivo and Oppo. And it didn’t change in the third quarter of 2022 either.

These were the five brands that made up the top five and accounted for nearly 70 percent of all smartphones shipped in the quarter.

Not only have the top five players in the global smartphone market remained unchanged over the past few quarters, but even their ranking has remained relatively unchanged.

The first two places are generally a competition between Apple and Samsung, with Apple generally taking the last quarter of the year (when new iPhone sales are at their highest), and the fourth and fifth places are rivalries between Oppo and Vivo.

Xiaomi to some extent held steady in third place remarkably. And there was no real change in the global smartphone rankings in terms of phones shipped in the third quarter of 2022:

1. Samsung
2. apple
3. xiaomi
4. Vivo and OPPO

Interestingly, IDC announced that Vivo and Oppo tied for fourth place as the difference between their shipments was 0.1 percent or less. Meanwhile, there is still no sign of any other brand breaking the dominance of the top five, despite the spree of releases from previous top charts Motorola and Nokia.

Samsung is on top, but it’s slowing down

Samsung may be at the helm of the global smartphone kingdom, but it hasn’t been really smooth for the Korean brand. Although its global market share increased from 20.8 percent in the third quarter of 2021 to 21.2 percent in the third quarter of 2022, its shipments actually decreased by 7.8 percent, declining from 69.5 million units in the third quarter of 2021. to 64 million units in the third quarter of 2022.

Although 64 million units represented an increase from 62.4 million units in the second quarter of 2022, the year-over-year decline is notable.

Apple is still growing a bit, but that’s more than anyone else

It may be way behind Samsung in terms of total shipments, but Apple was the only brand in the top five to report year-over-year growth. It wasn’t massive growth (a modest 1.6 percent) but was the exception in a quarter where declines were the norm, although growth was limited in many regions, including China.

The Cupertino giant’s iPhone 14 series only became unavailable at the end of the third quarter of 2022, but it continued to operate shipments of 51.9 million units compared to 51.1 million units in the third quarter of 2021.

The brand also saw its market share rise to 17.2 percent compared to 15.3 percent in Q3 2021 and up to 15.6 percent in the previous quarter (Q2 2022).

Xiaomi’s share has risen a little, but the growth is down

Chinese brand Xiaomi has been surprisingly consistent in third place for the past few quarters and Q3 2022 sees it holding its place. Interestingly, although its shipments declined from 44.4 million units in the third quarter of 2021 to 40.5 million units (a decrease of 8.6 percent), Xiaomi’s market share increased from 13.3 percent in that quarter to 13.4 percent.

Xiaomi also recorded an increase in shipments on a quarterly basis, up from 39.5 million in the previous quarter.

Vivo, OPPO slows down significantly

While the top three posted single digits of growth or decrease, the fourth-ranked brands, Oppo and Vivo, experienced sharper changes in wealth. While Vivo saw its shipments drop year-on-year by 22.1 percent from 33.3 million in Q3 2021 to 25.9 million in Q3 2022, Oppo fell 22.3 percent from 33.2 million to 25.8 million.

Their market shares have also fallen dramatically. Vivo captured 10 percent in the third quarter of 2021 but dropped to 8.6 percent in the third quarter of 2022.

Oppo had a 9.9% stake in the third quarter of 2021, and also found itself at 8.6% in the third quarter of 2022.

Keep in mind that both brands had roughly the same market share in the previous quarter — a far cry from the double-digit shares that both brands enjoyed in early 2021.

A market recovery is possible…but not soon

The outlook for the last quarter of 2022 through 2023 does not look very rosy. IDC believes that while the market will recover, it “will be pushed further into the year”.

The agency also expects “a sharp decline in shipments for 2022 and a smaller recovery in 2023.” Some might hope that the new iPhones and the release of new devices from Xiaomi will make a difference in the last quarter and those after, but the smartphone market clearly has a very steep hill to climb before you head off the gloom of a slowdown.

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