Significantly reduced demand for smartphones, here's why it's good news for buyers



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Significantly reduced demand for smartphones, here's why it's good news for buyers

Samsung is still number one in the world and after the second quarter of 2022 holds the largest market share in terms of smartphone shipments, at 21 percent, which is an increase from 18 percent from the same quarter of 2021, while the second is Apple with a market share of 17 percent, also increased, from last year's 14 percent.

Worldwide, 316 million smartphones were shipped in the second quarter, or 9 percent less than in the same period last year, which was helped by a drop in demand due to lower disposable income due to inflation and other economic obstacles, reports the analytical company Canalys.

Thus, in the second quarter, the decline in smartphone deliveries that has been present since the beginning of the year continued, and suppliers, as Canalys analysts point out, are "forced" to review their portfolio due to the accumulation of stocks in order to improve the result in the second part of the year.

However, despite the overall drop in shipments, the researchers note that the demand for Apple and Samsung smartphones is still high, and these two suppliers/manufacturers are still in the first two places in terms of sales, and among the top five they are the only ones that have increased their market share.

Samsung is still number one in the world

Samsung is still number one in the world and after the second quarter of 2022 holds the largest market share in terms of smartphone shipments, at 21 percent, which is an increase from 18 percent from the same quarter of 2021, while the second is Apple with a market share of 17 percent, also increased, from last year's 14 percent.

Among the top five suppliers are also Xiaomi, Oppo and Vivo, all of whom achieved a decline in the market share in deliveries of these phones this year, so Xiaomi's share fell from last year's 17 percent to this year's 14 percent, Oppo's from 11 to 10 percent, and Vivo's from 10 to 9 percent.

Canalys analysts also comment on the oversupply of mid-range and price phones piling up in inventory as inflation-constrained consumers shift purchases to lower-priced devices, and vendors are expected to step up promotions and special offers in the coming months to encourage better sales even before the holiday sales period near the end of the year.

“The decline in demand is a major concern for the entire smartphone supply chain. Although component inventories and cost pressures are easing, concerns remain within logistics and manufacturing, such as tightening import laws in some developing markets and customs procedures delaying shipments.

Therefore, future collaboration between suppliers and sales channels to monitor demand and inventory will be vital for everyone in that chain,” says analyst Toby Zhu.