Canalys: Smartphone sales fell 9% in Q2 2022 due to oversupply and soaring inflation

Apple
Tamsin Rodriguez19 July 2022Last Update : 4 weeks ago
Canalys: Smartphone sales fell 9% in Q2 2022 due to oversupply and soaring inflation

Canalys released a worrying report on the smartphone market for Q2 2022. Shipments between April and June fell 9% year-on-year following weaker demand for “economic headwinds and regional uncertainty”.

Samsung remained the top manufacturer in the second quarter, while Apple repeated second place from Xiaomi after strong sales of the iPhone 13, while Chinese manufacturers struggled at home.

According to Runar Bjørhovde, research analyst at Canalys, the companies faced sluggish demand, which led to new thinking in quarterly strategies. Rising inflation and stockpiling resulted in manufacturers “revaluing their portfolio” for the remainder of 2022.

The middle class segment is struggling more than expected. It is generally crowded and now sales are going even slower as consumers tend to look for even cheaper devices.

Canalys: Smartphone sales fell by 9% in Q2 2022 due to oversupply and rising inflation

Falling demand is a major concern for the entire supply chain, added Toby Zhu, an analyst at Canalys. Cost pressures are easing, but there is still the problem of logistics and production. For example, some new markets’ stricter import laws and customs procedures are delaying shipments even more.

The 9% decline is also affected by extremely high demand twelve months ago. There was an accumulated demand for the tough 2020, while consumer disposable income today goes to other products and goods, not electronics.

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