Shipment company

Falling global smartphone shipments suggest the worst is yet to come – Omdia, Access Evolution

There is worrying news in the latest report on preliminary results of global smartphone shipments from industry research firm Omdia, which shows that in the third quarter of this year, the number of global smartphone shipments fell by 7 .6% compared to the same quarter in 2021. Chinese manufacturers were the hardest hit, as shipments from Xiaomi, Oppo Group, Vivo, Transsion and Realme all fell by double digits.

Overall, the total number of handsets shipped in the three months to the end of September was 301.2 million units, down from 326.1 million a year earlier, the decline suffered by phone makers. ‘Chinese original equipment (OEM) being the main cause of the slump.

Samsung retained its market-leading crown, shipping 64.1 million smartphones in the quarter, up 3% from its second-quarter total but down 7.4% year-on-year. As is often the case, Apple ended up in second place in the table, having shipped 52.2 million smartphones in the third quarter, a 6.7% sequential increase and a 2.6% increase over compared to the third quarter of 2021. Apple tends to lag behind Samsung except in the fourth quarter of each year when it traditionally releases, and with much fanfare and ballyhoo, its latest premium iPhone offerings to a restless world with anticipating and looking to hand over large sums of money during the holidays and end-of-year celebrations.

Apple may be second in the overall smartphone rankings, but it’s the king of the high-end premium smartphone sector. In this sub-segment, Apple held a 17.3% share in the third quarter, compared to 15.6% in the third quarter of 2021. Omdia’s analyst team notes that Apple’s iPhone shipments increased from year to year for eight consecutive quarters.

Jusy Hong, senior research director at Omdia, commented: “Apple outperformed the broader market in the third quarter. [is] as its consumers tend to be loyal, high-income customers and as such are less affected by the current cost-of-living crisis than mid-range brands. Despite rising gas prices, inflation and declining disposable income, Apple iPhones seem to be more resilient; consumers are saving money elsewhere and finding a way to save enough to upgrade to the latest generation iPhone in a way that owners of Samsung, Honor or OnePlus phones don’t.

Meanwhile, major Chinese manufacturers seem stuck in a rut and seemingly unable to quickly reverse the decline in their fortunes that has manifested itself in recent months. In third, fourth and fifth place in the pecking order of smartphone shipments (see table above), Xiaomi, Oppo and Vivo all reported a sequential increase in smartphone shipments during the third quarter of 2.8%, 4.3% and 2% respectively, but this could not compensate for the massive declines in the beginning of the year, when the three connected Drop of 20% in the number of shipments between the first and second quarters.

Commenting on the crippling numbers, Omdia senior analyst Zaker Li noted: “The main contributing factor to this continued recession is the decline of China’s domestic smartphone market, the pandemic-related lockdown of major Chinese cities, the Russian-Ukrainian war, political crisis. conflict in India and the ensuing economic downturn, and increasingly intense competition with Honor and Huawei, which are experiencing rapid growth in the domestic market. Adding fuel to the fire, Xiaomi and Oppo experienced a shortage of components last year and as a result have significantly increased their purchases in order to secure the parts. An unintended consequence of this is a significant increase in inventory, which means OEMs must continue to lower their shipment target for this year and reduce component purchases. This is not encouraging for a quick recovery.

In seventh place in the ranking is Honor which, after shipping 14.2 million devices, is proving somewhat more resilient than rival Chinese handset makers, registering a drop of just 2.1% year-on-year. the other against the double-digit declines of its Chinese peers, as shown in the chart above. The Omdia team notes that Realme, in eighth place in the table, suffered an 11.7% year-on-year decline, not only due to domestic sales pressures, but also due to the much lower number of handsets sold in India, which so far has been a major factor. Realme product market.

Outside of China, Motorola sits ninth in the chart, having shipped 11.4 million units, both a sequential and year-over-year decline, while in 10th place is Huawei, which has found its way back into the charts with four successive quarters of steady growth. The Chinese company’s international struggles are well known, but nonetheless, Huawei shipped 8.6 million smartphones in the third quarter, an increase of more than 48% compared to the same period a year ago.

Omdia’s Hong commented, “In line with Omdia’s forecast, OEM shipments and targets have fallen and are not expected to increase in the fourth quarter of this year due to growing inventory backlogs. Many other negative factors have also affected consumer demand for smartphones, such as the overall global economic downturn, inflation, and a strong dollar. Even those who don’t have high inventory to move are reducing their purchase volumes. Overall, total smartphone shipments [so far] this year are down 8.2% from the same time last year, and we expect this trend to continue in the fourth and final quarter of 2022.”