2023: Smartphone market shows resilience despite 11 per cent dip in Q2

LONDON: The global smartphone market has experienced an 11 per cent decline in the second quarter (Q2) of 2023, according to data from analyst firm Canalys. This follows a 12 per cent decline reported in Q1 2023, marking a continued downward trend in global smartphone shipments since crossing the 350 million mark in Q1 2021.

Samsung remains the global leader despite a slight dip in market share from Q1 to Q2 2023, now holding 21 per cent of the market. Apple’s share fell by 4 per cent to 17 per cent in Q2 2023 from 21 per cent in Q1 2023, reflecting the overall market contraction.

In contrast, Xiaomi saw a 2 percent increase in global market share from the last quarter, rising to 13 per cent. This is, however, a drop from 14 per cent on a Year-on-Year (YoY) basis in Q2 2022. Other key players such as Oppo, which includes OnePlus, and Vivo maintained a steady market share of 10 per cent and 8 per cent respectively.

The report suggests that smartphone manufacturers are clearing their inventory to make room for new launches and accumulating key components to hedge against sudden price hikes.

The report further highlights a shift by Xiaomi, Transsion, Vivo, and Oppo into the sub-$200 price bracket, offering sales incentives to sellers. This move is likely a response to the changing market dynamics and consumer behaviour.

Despite the decline, the market shows signs of resilience and potential for recovery. The continued investment in new launches and strategic shifts in pricing suggest that manufacturers are adapting to the challenging market conditions.