Global smartphones sales have plummeted 7.8 percent in a year as the market struggles with poorer economic conditions.
Soft demand, inflation, macroeconomic uncertainties and a backlog of unsold handsets have contributed to the year-on-year decline from Q2/2022 to Q2/2023, according to the preliminary data.
International Data Corporation (IDC) says the 7.8 percent drop amounts to 265.3 million handsets and continues a decline in phone sales over eight quarters.
Samsung (-15.2 percent) and Xiaomi (-16 percent) experienced the biggest declines, Oppo sales were down 7.6 percent, and Apple 6.3 percent. Transsion sales jumped 34.1 percent, an indication that the developing world market is still growing, although Transsion is growing from a smaller market share of 9.5 percent.
Samsung still holds the greatest market share, 20.2 percent, ahead of Apple, 16 percent, although Apple narrowed the gap with Samsung from 6.1 percent to 4.2 percent year-on-year.
IDC worldwide smartphone shipments Q2/2022 to Q2/2023
The comforting news is that the rate of decline is slowing despite the continued global economic headwinds. In particular, IDC expects a big growth in the sale of foldable phones this calendar year.
“While this marks the eighth consecutive quarter of contraction as the market struggles with soft demand, inflation, macroeconomic uncertainties, and excess inventory, the rate of decline is slowing compared to previous quarters,” says IDC.
“The good news is that inventory levels are improving and the latest market chatter suggests that by Q3 excess inventory in finished devices and components should clear up,” says Nabila Popal, research director with IDC’s mobility and consumer device trackers.
“As inventory levels normalize, we are finally hearing optimism from key OEMs and supply chains and expect the market to return to growth by the end of the year and into 2024.
“As the market ramps back up, it is also an opportunity for vendors to gain share.”
The figures show a change in rankings of vendor sales, and marked differences in country-by-country performance. IDC says China manufacturer Transsion, has entered the top 5 for the first time. Its major markets are Africa, the Middle East, Southeast Asia, South Asia and Latin America. In China the decline was a milder 2.1 percent.
IDC expects better global sales figures in the second half of the year, as the market starts to turn around, with a prediction that foldables may finally catch on.
“The foldable market remains an exciting product to consumers, and the arrival of new models and new vendors joining the race will hopefully translate to wider adoption and lower prices,” says Anthony Scarsella, research director, mobile phones at IDC. “Moreover, we expect the foldable market to grow nearly 50 percent in 2023 while the total market remains down.”
