Compared to the holiday quarter of 2021, global smartphone shipments decreased by 17% in 2022, however, Apple’s iPhone shipments still retained the top rank.
Apple saw 2% year-over-year growth in 2022 while the worldwide smartphone market declined
According to new research conducted by Canalys, Apple had the largest market share at 25% in 2022, up 2% from the previous year. Samsung came in second with a 20% market share. Despite having its share decrease to 11% in the fourth quarter, mostly because of issues in India, Xiaomi managed to hold onto the third place. The remaining top five suppliers, OPPO and vivo, had market shares of 10% and 8%, respectively.
“Smartphone vendors have struggled in a difficult macroeconomic environment throughout 2022. Q4 marks the worst annual and Q4 performance in a decade,” said Canalys Research Analyst Runar Bjørhovde. “The channel is highly cautious with taking on new inventory, contributing to low shipments in Q4. Backed by strong promotional incentives from vendors and channels, the holiday sales season helped reduce inventory levels. While low-to-mid-range demand fell fast in previous quarters, high-end demand began to show weakness in Q4. The market’s performance in Q4 2022 stands in stark contrast to Q4 2021, which saw surging demand and easing supply issues.”
The smartphone market is likely to expand flat to marginally in 2023, according to Canalys, and the environment is anticipated to remain difficult. The market’s potential will be limited by the consequences of interest rate increases, economic slowdowns, and an increasingly difficult labor market, according to Canalys Research Analyst Le Xuan Chiew, even though pressure from inflation will progressively ease.
“Vendors will approach 2023 cautiously, prioritizing profitability and protecting market share,” said Canalys Research Analyst Le Xuan Chiew. “Vendors are cutting costs to adapt to the new market reality. Building strong partnerships with the channel will be important for protecting market shares as difficult market conditions for both channel partners and vendors can easily lead to strenuous negotiations.”
Some analysts had reduced their expectations of iPhone 14 Pro and iPhone 14 Pro Max shipments due to constant supply chain problems. It was also expected that the tech giant’s 2023 shipments would suffer due to pandemic-related restrictions in China. However, Apple seems to be catching up to consumer demand.