The crisis in the smartphone market is getting deeper. It hasn’t been this bad since 2014! Let’s see where the reluctance to buy comes from?
According to the latest report from analytics company Counterpoint, it was launched in the third quarter of this year 301 million smartphones.
As impressive as this number may seem, it turns out it is Earnings up to 12% lower compared to the third quarter of 2021! So the drop is huge and so far there is no sign of an improvement in this result. All, of course, because of the unstable economic and political situation in the world.
Most major suppliers continued to experience annual supply declines in the third quarter of 2022. Russia’s escalating war in Ukraine, ongoing political distrust between China and the US, rising inflationary pressures in various regions, mounting recession fears and weakening national currencies have further depressed consumer sentiment and hit already weakened demand
– explains Senior Analyst Harmeet Singh Wales.
The decline is also influenced by at least one positive factor – we’re talking about that, of course growing user awarenesswho choose to replace their gear less often, giving them longer lifespans.
There have not been such big technological differences between subsequent devices over the years as was the case a few smartphone generations ago.
Crisis in the smartphone market – Apple is relentless
Counterpoint adds that with the launch of the latest iPhones, Apple has become the only smartphone vendor to see annual growth in smartphone sales. Samsung saw shipments fall (down 8%) but the company had a sensational third quarter which saw Samsung post profits.
The situation is worst for Chinese brands, incl Vivo and Oppo (both down 23%), although Xiaomi also recorded a 9% drop. There are no signs that the situation in the smartphone market will stabilize in the near future.
Looking ahead to 2023, we expect demand to slow down [..] especially in the first half of the year
– adds Deputy Director Jan Stryjak.
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