The last quarter of 2022 has not been great for the smartphone industry. Research agency Canalys released a report today revealing that smartphone shipments fell by 17% to less than 1.2 million units for the three months of October through December 2022. Apple was on top and had its highest quarterly market share at 25% ever it suffered production shortages as workers at the Foxconn plant in Zhengzhou left to avoid a COVID outbreak. In the fourth quarter of 2021 Apple had a 23% share of global smartphone shipments.
Samsung saw its share of the global smartphone pie increase from 19% in the fourth quarter a year earlier to 20% in the fourth quarter of 2022. Xiaomi was third with 11% of the global smartphone market compared to the 13% market share it had last year had. Oppo captured 9% of the global smartphone market in the last quarter of last year, compared to its 8% in the last quarter of 2021.
Samsung was second to Apple in the fourth quarter, but was the largest smartphone manufacturer in the world by 2022
And Vivo rounds out the top five. Like Oppo, one of the companies under the BBK Electronics umbrella (along with OnePlus, Realme, and iQOO), Vivo captured the same 8% of global smartphone shipments in Q4 2022 as it did in 2021. decline of 28% in the fourth quarter of 2021 to the last quarter of 2022.
Apple had the largest market share of smartphone manufacturers worldwide in the fourth quarter of 2022
Throughout 2022, Samsung remained the number one smartphone brand in the world by shipments. The company was responsible for 22% of smartphone shipments worldwide last year. That’s more than the 20% share it owned in 2021. Apple came in second and kept pace with Samsung in increasing its share of the global smartphone pie from 19% in 2021 to 21% in 2022.
For all of 2022, Samsung has shipped the most smartphones worldwide
Xiaomi ended up with 13% of the global smartphone market last year, slightly less than the 14% market share it captured the year before. Oppo and Vivo both accounted for 9% of global smartphone shipments in 2022. Oppo registered an 11% share in 2021, while Vivo held 10% of the smartphone market that year. For 2022, brands in the “other” category collectively made up 28% of global smartphone shipments, equaling the number in 2021.
Canalys Research Analyst Runar Bjørhovde said: “Smartphone vendors have struggled in 2022 in a tough macroeconomic environment. Q4 marks the worst annual and Q4 performance in a decade. The channel is very cautious about taking on new inventory, contributing to low shipments in Q4 Buoyed by strong promotional incentives from sellers and channels, the holiday sales season helped reduce inventory levels.
Canalys says the 2023 smartphone market will be impacted by higher interest rates, weak economies and inflation
Bjørhovde added: “While low- to mid-market demand declined rapidly in previous quarters, high-end demand began to show weakness in the fourth quarter. The market’s performance in the fourth quarter of 2022 is in stark contrast to the fourth quarter of 2021, in which demand increased and decreased.
“Sellers will approach 2023 with caution, prioritizing profitability and protecting market share,” said Canalys Research Analyst Le Xuan Chiew. “Suppliers are reducing costs to adapt to the new market realities. Building strong partnerships with the channel will be important for protecting market shares, as difficult market conditions for both channel partners and suppliers can easily lead to difficult negotiations.”
Chiew also forecast the smartphone market for 2023. “Although inflationary pressures will gradually ease, the effects of interest rate hikes, economic slowdowns and an increasingly difficult job market will limit market potential. high-end dominated markets, such as Western Europe and North America.”
The analyst concluded by saying, “While China’s reopening will improve domestic consumer and business confidence, government stimulus measures are unlikely to take effect for another six to nine months and demand in China will bounce back in the near term.” Still, some regions are likely to grow in the second half of 2023, with Southeast Asia in particular expected to see some economic recovery and a resurgence in tourism in China, boosting business activity.”