Global smartphone market shows signs of recovery
The global smartphone market displayed a glimmer of hope with a slight decline of 1 per cent during the third quarter 2023, according to a recent report by industry analysts Canalys.
The report noted that this drop, though modest, indicates a notable slowdown in the market’s downward trend.
The positive shift is attributed to regional recoveries and growing demand for new product upgrades, setting the stage for a promising sales season.
In terms of the primary market players, Samsung maintained its dominant position with a 20 per cent market share, despite experiencing a minor dip from its Q3 2022 performance.
Furthermore, US technology giant Apple secured the second spot with a 17 per cent market share.
Xiaomi emerged as the third-largest player, boasting a 14 per cent market share. The company saw annual and sequential growth in unit shipments, reflecting a rebound in its performance.
OPPO, including OnePlus, took the fourth position with a 9 per cent market share, primarily due to its robust presence in the Asia Pacific region.
TRANSSION rounded out the top five with a 9 per cent share and marked significant year-over-year expansion.
What is more, according to Canalys analyst Amber Liu, Huawei and Apple were the stars of the smartphone market this quarter. Their new product launches managed to outshine flagship series renewals from many other vendors.
Huawei’s new Mate series, featuring the latest Kirin chipset, received an enthusiastic response from consumers in Mainland China. Demand for Huawei devices has surged, leading to increased orders from operators.
“Huawei and Apple’s new launches electrified the market this quarter, outshining many other vendors’ flagship series renewals,” said Liu.
“Huawei’s new Mate series, featuring the latest Kirin chipset, has drawn enthusiastic consumer response in Mainland China. Operators are racing to stock up on Huawei devices to meet the surging demand,” she added.
Meanwhile, Apple bolstered its new iPhone 15 series with enhanced performance and features, maintaining its track record of stimulating consumer demand. The market landscape was reshaped by these high-profile releases.
In contrast, while Samsung is scaling back its involvement in the entry-level segment to prioritize profitability, Xiaomi and TRANSSION capitalized quickly on the rebound in emerging markets. They achieved this by offering competitive products and optimizing their distribution networks. The short-term victories of these companies could potentially translate into long-term success if they continue to make strategic moves.
However, Canalys analysts are cautioning smartphone vendors to remain vigilant as the market recovers. Global macroeconomic and geopolitical uncertainties have introduced fragility into the nascent recovery and channel operations.
Canalys’ forecasts indicate a slowing medium-to-long-term growth trajectory for the smartphone market.
Toby Zhu, another analyst at Canalys, emphasized the need for meticulous monitoring of stock turnover and end demand.
“Vendors should remain cautious about the rebound,” Zhu said.
“The global macroeconomic and geopolitical uncertainties brought fragility into the nascent recovery and channel operations,” he added.
This is crucial to avoid complications stemming from high inventory levels. Vendors are seen to be strategically replenishing channel and component inventories, anticipating potential spikes in demand and supply chain costs.
“We see vendors strategically rebuilding channel and component inventories to prepare for potential resurgent demand and supply chain cost hikes,” Zhu explained.
“The current short-term order surge alongside reduced supply capacity may cause component shortages, challenging planning and production,” he concluded.