Three consecutive quarterly worldwide sales of smartphones decreased

Global smartphone sales fell 9% in the third quarter of this year. With this, smartphone sales have declined for three consecutive quarters. Due to the slowdown in the global economy, the smartphone market has been affected, with consumers reducing their purchases of electronic gadgets and focusing on buying and saving essentials. Analysts say the next six to nine months could also be negative for the smartphone market. According to the report by technology market analyst Canalys, the last quarter was the worst quarter for smartphone sales after the third quarter of 2014.

Rising global interest rates and rising fuel prices weighed on consumer spending. The slowdown in Chinese economic growth and the impact of the Covid-19 lockdown have led to a slowdown in smartphone sales. Domestic companies like Xiaomi, Vivo, and Oppo also saw double-digit declines in smartphone sales. Only Apple’s iPhone sales saw an increase. With the unveiling of the iPhone 14 last September, Apple’s global share rose to 18%. During the July-September quarter, the market share of Xiaomi, Oppo and Vivo was 14%, 10%, and 9% respectively.

Canalys analyst Sanyam Chaurasia said the smartphone market is unlikely to recover in the fourth quarter of this year and the first half of 2023. Many customers may delay buying new smartphones in the hope for various bundled discounts and promotions. The kind of smartphones that were sold during this festive season last year are not seen this time around.

Although Apple’s sales increased in the third quarter based on the iPhone 14, the Californian technology giant gave negative news. According to two sources familiar with the matter, The Information said that Apple has sent instructions to suppliers to cut production of iPhone 14 Plus phones. According to the report from this tech site, at least one factory in China has suspended production of iPhone 14 Plus phones. Reuters news agency received no comment when contacted by Apple in this regard. According to a Bloomberg report last month, Apple has pulled out of production volume for the new iPhone series.

The Russian-Ukrainian war, the prolonged lockdown in China, and price inflation in major economies have affected the global economy for various reasons. In this, sales of almost all types of industrial products and materials, including semiconductors, personal computers (PCs), and LCD panels, have declined. Similar to the third quarter, global smartphone sales fell 9% in the second quarter. The market share of Samsung, the top smartphone vendor based on the affordable Galaxy A series smartphones, was 21%. The South Korean smartphone giant has sold around 60 million units. Still, in high demand for the iPhone 13, Apple, which takes second place, has a 17% market share. In the first quarter, more than 31 million smartphones were sold, but in the second quarter, it stood at 27.5 million units. In the same quarter of last year, smartphones were sold at 31.6 million units.

During the first two years of the pandemic, the demand for smartphones, tablets, and PCs to meet business and entertainment needs reached an all-time high. Considering this, smartphone makers are also coming up with new handset models in the market. Consumers now have several options. Global inflation and economic uncertainty have led consumers to reduce their purchases of essential goods.

Note that global smartphone sales in 2021 were the highest in four years. Global smartphone sales rose 4% to 1.39 billion units in 2021, according to data from Counterpoint Research. On the other hand, according to the International Data Corporation (IDC) report, global smartphone sales grew by 5.7% to 135 million units last year. According to Counterpoint Research, a record 1.56 billion smartphone units were sold in 2017. Smartphone sales have been declining over the past three years. Global smartphone sales hit a four-year high in 2021, driven by strong sales in North America, Latin America, and India.

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