Smartphone Market Wobbles Slowing Premium, Trade Ins & Offers, Key In Q3 As Samsung Comes Into Play
Next week Samsung is punting on a big boost in sales of their new Fold and Flip 5 smartphones, with new market share reports claiming that Samsung is holding up in the premium market but wallowing in the value market.
Last week, IDC reported a decline in global smartphone shipments in the second quarter of this year, this week both research Companies Counterpoint and Canalys reported that while sales have fallen for eight consecutive quarters the decline is tapering off with retailers taking a punt on the New Samsung foldable smartphones to try and drive sales in the premium smartphone market.
According to Counterpoint Samsung’s share fell 12 percent while archrival Apple had the lowest decline of only 3%.
In the second quarter of 2023, Samsung led the global market with 22 percent share followed by Apple with 17 percent share, In Australia Motorola is the brand to watch having snared the number three spot with the Motorola Razer 40 now a serious contender up against the new Samsung Flip 5.
Also coming into play is their new Motorola Edge 40 which has attracted excellent reviews in several markets where the model has been launched.
Several reasons have emerged for the contraction in smartphone shipments including longer replacement cycles, innovation convergence, and a growing demand for refurbished devices.
In coming weeks consumers can expect an acceleration in offers around smartphones with trade ins, free memory and headphone give aways set to front and centre of offers.
Counterpoint Research expects a market recovery in the upcoming quarters due to healthy inventory levels at retailers selling new Samsung and Motorola devices, newer models, and consumer upgrades of premium smartphones.
Canalys also reports that there is light at the end of the tunnel and that the analysts have spotted the first signs of recovery in the smartphone market.
Recently Oppo who at one stage was a contender for the #3 spot in Australia lost their position in JB Hi Fi stores with their branded space set to be taken by another key brand.
The Chinese Company who has recently stopped selling premium smartphones, choosing the value and market to compete in has seen their global market share fall after being dumped by European retailers after their patent fight with Nokia.
Two other brands that are on the outer in Australia are Realme and Vivo, with both Nokia and Motorola looking to pick up share as they compete up against Samsung’s A Series and value range of smartphones including a new Samsung FE model.
Retailers and Analysts have told ChannelNews that the premium smartphone segment has continued to grow with demand for Apple iPhone 13 and 14 models along with Samsungs S23 and foldables driving demand as consumers seek out a superior mobile experience and accessible financing options.
A key element of this market has become trade in values, with many consumers only stepping up to a new premium model based on the trade in value of their old phone claim analysts.
Nearly 20 percent of all smartphones sold in the last quart fell into the trade in category claims Counterpoint.