Canalys: Bad News, Good News, and Interesting Lines on Smartphones
20 JULY 2022 - Bad news, good news, and some interesting lines in the smartphone space. Market tracker Canalys brings it all, starting with bad news for the smartphone market in general. It was down last quarter, in the firm’s estimation. “Worldwide smartphone shipments fell 9% year on year in Q2 2022,” according to a recent Canalys report. They say “Demand has started to wane following economic headwinds and regional uncertainty.”
Where’s the good news? It’s at the top. Both Samsung and Apple saw their global shares grow for the June-Q of 22 versus the same quarter a year earlier. First-place Samsung grew its share from 18% last year to 21% this year. Second-place Apple stayed in second, though it too saw growth - from 14% in the second-quarter of 2021 to an estimated 17% global market share last quarter. Third, fourth, and fifth place Xiaomi, OPPO and vivo all saw shares decline year-on-year, according to the firm.
As for the interesting lines - they were on one of the Canalys charts (top of the page). Year-on-year, Xiaomi, OPPO and vivo did decline. But, from the end of the March-quarter to the end of the June-quarter, OPPO stayed even while Xiaomi and vivo trended up. Maybe that was blocks clearing in the supply chain. Maybe it was an aggressive round of promotions. It seems possible, at least, that people who might have sprung for a pricier phone went lower #InThisEconomy. The report quotes one analyst indicating that that may have been a thing last-quarter and could be for quarters to come. Quoting the analyst:
Vendors were forced to review their tactics in Q2 as the outlook for the smartphone market became more cautious… Economic headwinds, sluggish demand and inventory pileup have resulted in vendors rapidly reassessing their portfolio strategies for the rest of 2022. The oversupplied mid-range is an exposed segment for vendors to focus on adjusting new launches, as budget-constrained consumers shift their device purchases toward the lower end.
