Despite massive product launches from Samsung and Apple, the global smartphone market recorded its worst September quarter since 2014.

The 9 per cent year-on-year drop marks its third consecutive decline this year, according to figures from Canalys, who put the drop to consumers delaying purchasing tech gear to prioritise essential spending amidst the “gloomy economic outlook”.

Samsung retained its leading position with a 22 per cent market share, trailed by Apple who improved its market position from move from 15 per cent to 18 per cent.

Xiaomi, OPPO and vivo retain 14 per cent, 10 per cent and 9 per cent global market shares, respectively, driven by strong Chinese sales.

“The smartphone market is highly reactive to consumer demand and vendors are adjusting quickly to the harsh business conditions,” said Canalys Analyst Amber Liu.

“For most vendors, the priority is to reduce the risk of inventory building up given deteriorating demand. Vendors had significant stockpiles going into July, but sell-through gradually improved from September owing to aggressive discounting and promotions.

“The pricing strategy of new products is cautiously crafted, even for Apple, to avoid significant pushback from consumers who now tend to be very sensitive to any price hike,” added Liu.

“As demand shows no signs of improvement moving into Q4 and H1 2023, vendors have to work on a prudent production forecast with the supply chain while working closely with the channel to stabilise market share,” said Canalys Analyst Sanyam Chaurasia.

“Going into the sales season, consumers who have been delaying purchases will expect steep discounts and bundling promotions as well as significant price reductions on older generation devices. Compared to the strong demand period of the previous year, a slow but steady festive sale is anticipated in Q4 2022.

“However, it will be too soon to see the upcoming Q4 as the real turning point of market recovery.”