Canalys has released a worrying report on the smartphone market for the second quarter of 2022. Shipments between April and June fell 9% year on year after falling demand, following “economic headwinds and regional uncertainty”.
Samsung remained the leading manufacturer in the second quarter, while Apple took second place from Xiaomi after strong sales of the iPhone 13, while Chinese manufacturers struggled at home.
According to Runar Bjørhovde, Research Analyst at Canalys, companies faced weak demand, which led to rethinking quarterly strategies. Rising inflation and stockpiling led manufacturers to “re-evaluate their portfolios” for the remainder of 2022.
The mid-range segment is struggling more than expected. It is generally overcrowded and sales are now even slower as consumers tend to look for even cheaper devices.
The drop in demand is causing great concern for the entire supply chain, added Toby Zhu, analyst at Canalys. The cost pressure is easing, but there is still the problem with logistics and production. For example, the tightening of import laws and customs procedures in some emerging markets further delays shipments.
The 9% decline is also affected by extremely high demand twelve months ago. There has been pent-up demand, after the difficult 2020, while today consumer disposable income goes towards other products and goods, not electronics.
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