Smartphones are declining at an alarming rate in the global market from the annual rate in 2022.. What is the reason?

Samsung
alex mathos28 May 2022Last Update : 1 month ago
Smartphones are declining at an alarming rate in the global market from the annual rate in 2022.. What is the reason?

The global smartphone market fell 7% year-on-year, and by 12% quarter-on-quarter to 328 million units in the first quarter of 2022, a decline that is causing concern for many producing companies.

As for the Korean giant, Samsung, the company’s shipments decreased by 3% year-on-year, although the brand was among the top five smartphone companies that achieved quarterly growth, as its market share rose to 23% from 19% in the last quarter, resulting in Samsung will take first place ahead of Apple in the first quarter of 2022.

Speaking of Apple, the company’s shipments were down 1% annually to 59 million units in the first quarter of 2022. This was after an expected drop in quarterly shipments of 28%.
Other companies, Xiaomi, OPPO, and vivo, also continued to suffer, causing quarterly and annual declines in shipments of all smartphones.

The reason for the decline of smart phones in the global market

According to the latest research from Counterpoint’s market monitoring service, the market smart phones Globally, increased by 7% year-on-year, with 328 million units shipped in the first quarter of 2022, and the reason for the decline was the continuing shortage of components and chips, as well as the renewed spread of the Corona virus at the beginning of the quarter, as well as the Russian-Ukrainian war at the end, and thus As expected, the global smartphone market saw a seasonally lower 12% qoq.

Commenting on the overall market stats and movement, Chief Technical Analyst Harmeet Singh Walia said during a press interview:

“The global smartphone market presented a mixed bag in the first quarter of 2022, and Samsung appears to have overcome a component shortage that affected offerings last year, achieving expected growth in its shipments despite a late major launch. Meanwhile, major Chinese manufacturers, such as Xiaomi, OPPO and vivo, faced an even bigger crisis in the supply of components, which reduced their shipments by 20%, 19% and 19%, respectively.

Smartphones are declining at an alarming rate in the global market from the annual rate in 2022.. What is the reason?

Samsung shipped 74 million units in the first quarter of 2022, down just 3% year on year, and was one of the top five smartphone brands that came close to Q1 shipments before the viral pandemic hit the world.

While Apple’s global smartphone shipments remained flat compared to the first quarter of 2021 at 59 million units in the first quarter of 2022. This was due to strong demand for the iPhone 13 series and the early launch of the first SE series with 5G technology that helped raise Apple’s share market to 18% from 17% in the first quarter of 2021.

Regarding Xiaomi:
Xiaomi’s global smartphone shipments fell 20% year-on-year to 39 million units in the first quarter of 2022, with its market share dropping to 12% from 14% in the same quarter last year. The reason for this was the relatively poor performance of the Redmi 9A and 10S smartphones, along with the lack of chips that hurt Xiaomi more than others. Xiaomi was also unable to capitalize on the Chinese New Year’s shopping festival, as its share of the world’s largest smartphone market fell below 15% (16% in the last quarter and the same quarter last year).

Moving on to Oppo:
OPPO’s shipments declined 19% y/y and 9% q/q to 31 million units in the first quarter of 2022 due to supply side constraints caused by persistent component shortages.

Being an offline focus and with few major new launches, OPPO shipments have been affected more severely during the wave of the new Omicron, especially in its key markets like India. As a result, its market share has fallen to 9% from 11% in the first quarter of 2021.

And concluding with Vivo:
Vivo is also down 19% YoY and 3% QoQ with its market share dropping to 9% in the first quarter of 2022, down from 10% in the same quarter last year.

Like OPPO, vivo has faced component shortages more severely since the end of last year, and there has also been greater competition in the mass market which is a major driver of Vivo’s shipment volumes. So despite the good performance in China it has seen a decline in global shipments.

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