Negative trend in the smartphone market with a decline for the fourth quarter in a row, Samsung, Apple and Xiaomi still leading | ICT Business | TechBuzz

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According to preliminary data from IDC, global shipments of smartphones fell by 8.7 percent in the second quarter of this year compared to the same period in 2021. This marks the fourth consecutive quarter of decline for the smartphone market as shipments fell to 286.0 million units in the quarter, about 3.5 percent below forecasts.

“What started as a supply-constrained industry earlier this year has turned into a demand-constrained market,” said Nabila Popal, research director of IDC’s Worldwide Tracker team.

“Although supply has improved as capacity and production have increased, rampant inflation and economic uncertainty have severely dampened consumer spending and increased inventories in all regions. OEMs cut orders through the end of the year, with Chinese suppliers making the biggest cuts as their largest market continues to struggle. While we expect demand to start picking up in some regions towards the end of the year, the smartphone market outlook for 2022 will be revised down by a few points. We still believe that any decline today is not lost demand, but simply pushed forward”, claimed Nabila Popal.

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Looking at regional trends, the biggest decline in the second quarter was in Central and Eastern Europe (CEE), as expected, down 36.5 percent year-on-year as the war in Ukraine continues to hamper the region.

However, from a volume standpoint, CEE only accounts for 6 percent of global shipments, so the biggest decline in global volumes expectedly came from China, which fell 14.3 percent year-on-year. Asia/Pacific (excluding Japan and China) (APeJC), which accounts for almost half of all global shipments, also fell 2.2 percent in the second quarter of this year. All other regions, except Canada, saw low- to mid-single-digit declines.

Despite the challenging environment, the positioning of smartphone manufacturers did not change much during the second quarter of this year.

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Samsung retained the top spot with a 21.8 percent share and healthy growth in all regions except Europe. Apple is in second place with a 15.6 percent share, while Xiaomi is in third place, reducing the difference to a 13.8 percent share. vivo and OPPO finished the quarter in fourth position with 8.7 percent and 8.6 percent share, respectively.



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