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Global smartphone shipments hit the lowest quarterly number in two years after inflation and recession fears hurt consumer confidence, according to market research firm Canalys. The quarter saw a 9% fall to roughly 290 million units shipped, with Chinese vendors leading the declines, it said.
Market leader Samsung Electronics Co. retained the top spot with about 62 million units shipped while Apple held second, followed by Xiaomi, Oppo and Vivo. The Chinese trio each registered double-digit drops in shipments with Xiaomi sliding by 25%, showed the data.
“Vendors were forced to review their tactics in Q2 as the outlook for the smartphone market became more cautious,” it said. “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,” it add.
“In the near term, vendors will look to accelerate sell-through using promotions and offers ahead of new launches during the holiday season to alleviate the channel’s liquidity pressure,” it said. “But in contrast to last year’s pent-up demand, consumers’ disposable income has been affected by soaring inflation this year.”