Smartphone sales down 9% in Q2 2022 due to rising inflation, but iPhone 13 remains in high demand: Report

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Worldwide smartphone shipments declined 9 percent year-on-year in the second quarter of 2022. Demand has started to subside following economic constraints and regional uncertainty. Samsung took the first position with 21 percent market share as it strengthened its low-end A series supply. Apple came second with a 17 percent share as the demand for the iPhone 13 remained high. Xiaomi, OPPO and vivo continued to struggle in China, facing double-digit declines to take 14 percent, 10 percent and 9 percent market share respectively.

“Vendors were forced to review their strategy in the second quarter as the outlook for the smartphone market became more cautious,” said Canalys Research Analyst Runner Björhovde. “Economic adverse conditions, sluggish demand and inventory pileup have resulted in vendors rapidly re-evaluating their portfolio strategies for the rest of 2022. An open opening for oversupplied mid-range vendors to focus on accommodating new launches segment, as budget-constrained consumers tend to shift their device purchases towards the lower end.”

“The falling demand is a cause for great concern for the entire smartphone supply chain,” said Canalys analyst Toby Zhu. “While component supply and cost pressures are easing, some concerns remain within logistics and production, such as some emerging market import laws and customs procedures delaying shipments.

In the short term, vendors will try to accelerate sales by using promotions and offers ahead of new launches during the holiday season to ease the channel’s liquidity pressure. But unlike last year’s stagnant demand, consumer disposable income has been hit by rising inflation this year. Deeper collaboration with channels to monitor inventory and supply positions will be critical to identify short-term opportunities for sellers while maintaining healthy channel partnerships in the long run.

Meanwhile, Apple is reportedly planning to launch the 6.1-inch iPhone 14, 6.1-inch iPhone 14 Pro, 6.7-inch iPhone 14 Max and 6.7-inch iPhone 14 Pro Max in September this year and now a new report I have come claimed that the demand for the upcoming iPhone 14 series in China is likely to surpass the demand for the iPhone 13 model.

Smartphone sales fell 9% in Q2 2022 due to rising inflation, but iPhone 13 remains in high demand: report first appeared on BGR India.



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