IGI Logo

 Global smartphone shipments fell 9 per cent (year on year) in the second quarter (Q2) this year as Samsung led with a 21 per cent market share, a new report has said.

Apple came second with a 17 per cent market share as the iPhone 13 remained in high demand.

Xiaomi, OPPO and vivo continued to struggle in China, suffering double-digit declines to take 14 per cent, 10 per cent and 9 per cent market shares, respectively, according to research firm Canalys.

Demand has started to wane following economic headwinds and regional uncertainty, the report noted.

"Vendors were forced to review their tactics in Q2 as the outlook for the smartphone market became more cautious," said Canalys Research Analyst Runar Bjorhovde.

Economic headwinds, sluggish demand and inventory pileup have resulted in vendors rapidly reassessing their portfolio strategies for the rest of 2022.

"The oversupplied mid-range is an exposed segment for vendors to focus on adjusting new launches, as budget-constrained consumers shift their device purchases toward the lower end," he added.

Falling demand is causing great concern for the entire smartphone supply chain.

"While component supplies and cost pressures are easing, a few concerns remain within logistics and production, such as some emerging markets' tightening import laws and customs procedures delaying shipments," said analyst Toby Zhu.

In the near term, vendors will look to accelerate sell-through using promotions and offers ahead of new launches during the holiday season to alleviate the channel's liquidity pressure.

But in contrast to last year's pent-up demand, consumers' disposable income has been affected by soaring inflation this year.

"Deep collaboration with channels to monitor the state of inventory and supply will be vital for vendors to identify short-term opportunities while maintaining healthy channel partnerships in the long run," Zhu added.