Smartphone sales fell in the second quarter, Canalys reported. Global shipments dropped to 287 million units. Samsung remained in the lead, while Apple took second place from Xiaomi as Chinese companies struggled to respond to declining demand.
Samsung and Apple may have seen slight improvements on an annual basis but it is the Chinese companies that drag the entire market into the red. China suffered a series of lockdowns during the quarter, which disrupted the smartphone market and hurt local brands, which have a strong presence there.
Analysts predict supply chain shortages will no longer be a pressing issue for the industry as component orders decline and suppliers worry about oversupply. The situation requires more from companies to adapt and plan accordingly, including measures such as extra savings and competitive products launched in the second half.
Forecasts for the second half of 2022 indicate that demand will remain weak despite upcoming festival launches and sales. Several key reasons are the difficult trading conditions of a strong US dollar, geopolitical problems, Chinese companies having problems in a major market like India, and high inflation around the world.
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