Smartphone manufacturers have had a very bad year. Virtually all of you are seeing huge declines.
If anyone follows the tech scene, they probably know that already in 2019 or 2020 there was talk of a strong slowdown in sales growth for the largest smartphone manufacturers. The dominant factor then was simply the saturation of the market and the fact that phones last longer and longer due to the increase in performance. Of course, that hasn’t stopped the group of people buying phones because they want new gadgets, but overall the galloping profits have slowed. From 2020, more blows are coming to the industry. First, the pandemic and the economic uncertainty it caused brought downturns—people simply had other expenses than a new smartphone. However, the pandemic also disrupted supply chains, which in turn meant that not all phones appeared in all markets and – in general, development in some segments slowed down somewhat. We are still feeling the effects of this today, and unfortunately there was a war in Ukraine, which also fueled post-covid inflation in virtually all Western markets.
This means only one thing – further declines by smartphone manufacturers
According to the Omdia agency, compared to the same period in 2021, the total sales of smartphones in the world decreased by more than 7 percent in the third quarter of 2022. These drops are not evenly distributed among all players in the world. Let’s start from the top – Samsung, still the market leader with a significant lead over Apple, has lost a lot. However, a drop of over 7% is definitely felt. Chinese brands have seen very strong declines, most of which are characterized by double-digit R/Y declines. Xiaomi fell by 11 percent, Oppo Group (Oppo + OnePlus) by almost 19 percent, and Vivo and Transion (which is responsible, among other things, for the Infinix brand that recently debuted in Poland) – by more than 20 percent.
The fact that Apple is bucking these trends and establishing itself as the second most popular smartphone maker in the world should come as no surprise. The company has a very strong sales market, controlling half of sales in the United States, and as Omdia experts believe, much of the decline is due to major weaknesses, among others native to 8 out of 10 brands on the Chinese list. However, as you may have noticed, one of the companies on this list has also seen growth, tremendously so. It is, of course, Huawei, which boasts almost 50 percent. grow. what caused it Well, first of all, as we noted, the smartphone company has returned from a rather long journey and finally released new mid-range models after a long hiatus. They are improving the sales condition, which has been very weak recently, as evidenced by the fact that Huawei moved up to 10th place in the global ranking, even with the recently sold Honor.
Unfortunately, the poor condition of the world’s largest economies is unlikely to end in the near future, so when it comes to producers – we should rather prepare for the lean months ahead.