Global smartphone market falls 9% in Q3 2022, Apple only brand to grow: report

Global smartphone shipments declined for the third straight quarter at 9% year-on-year (YoY) in the three months ending September, said market researcher Canalys in a report, published Tuesday. According to Canalys, this is the worst Q3 for the global smartphone market since 2014.  

Apple was the only brand to register positive YoY growth during the quarter on the back of robust demand for iPhones, as per the report. 

Analysts at Canalys attributed the decline in shipments to the “gloomy economic outlook” which has led consumers to cut spending on electronics and prioritise spending on more essential items.  

“The smartphone market is highly reactive to consumer demand and vendors are adjusting quickly to the harsh business conditions,” said Amber Liu, analyst at Canalys.  

According to Canalys, the weak demand will continue to hamstring the smartphone market for the next six to nine months. 

“As demand shows no signs of improvement moving into Q4 and H1 2023, vendors have to work on a prudent production forecast with the supply chain while working closely with the channel to stabilise market share,” said Sanyam Chaurasia, analyst at Canalys. 

Chaurasia said that vendors can expect a slow but steady festive sale in the December quarter as compared to the strong demand seen last year.  

In terms of market share, Samsung continues to be the top smartphone brand in Q3 with 22% of the overall shipments. According to Canalys, Samsung’s growth was because of the heavy promotions it offered, which allowed it to keep channel inventory low.  

Apple also retained the second position with an 18% market share, up from 15% a year ago.  

The other three brands in the top five were Xiaomi, Oppo, and Vivo with 14%, 10%, and 9% global smartphone market share, respectively. Canalys attributed its status quo to uncertainty in the Chinese market and cautious overseas expansion.  

“For most vendors, the priority is to reduce the risk of inventory building up given deteriorating demand. Vendors had significant stockpiles going into July, but sell-through gradually improved from September owing to aggressive discounting and promotions,” said Liu.