In Q2 2023, IDC revealed a slump in worldwide smartphone shipments. Supporting this trend, Counterpoint’s Market Pulse service has also observed a downturn in the global smartphone market from April to June. Notably, it marks the eighth quarter in a row where year-on-year declines are reported. The fall was 8 percent YoY and 5 percent QoQ. Read on for more detailed analysis.
Global Smartphone Market Stumble in Q2 2023
Counterpoint data indicates a decrease in smartphone sales across all markets. The most substantial drops happened in developed regions like the US, Western Europe, and Japan, showing double-digit falls. In contrast, markets like China, India, the Middle East, and Africa experienced a less drastic contraction.
Reasons Behind the Market Contraction
The decline in smartphone shipments can be attributed to extended replacement cycles, innovation convergence, and a surge in demand for refurbished devices.
Smartphone Brands Performance in Q2 2023
All OEMs recorded negative year-on-year growth. Vivo saw a 17 percent drop, followed by Xiaomi and Samsung at 12 percent. Apple and OPPO recorded the least decline with 2 and 3 percent, respectively. Samsung dominated Q2 2023 with a 22 percent market share, followed by Apple and Xiaomi. OPPO and Vivo held the fourth and fifth spots. Samsung’s robust performance can be credited to the Galaxy A-series’ global success, while Xiaomi expanded in markets beyond China and India.
Growth in the Premium Smartphone Segment
While the general market trend pointed downwards for the eighth consecutive quarter, the premium segment (wholesale price above $600) bucked the trend. This growth can be attributed to customers looking for superior experience and accessible financing options. Nearly 20 percent of smartphones sold fell into this category. Apple exploited this trend, recording 50 percent YoY growth in India.
Anticipated Market Recovery
Counterpoint Research anticipates a recovery in the coming quarters due to healthy inventory levels, new models, and consumer upgrades.