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Smartphones suffer the biggest drop in history, losing 18.3%

Not half a month has taken IDC to launch its report on the market for mobile phones or smartphones. And it is that the one we saw from Canalys was subject to the laptop market, because they almost go hand in hand, which have pulled the technology bandwagon until now. Well, now we have concrete data on the smartphoneand they are really alarming, since they have recorded biggest crash in history since there are records. In addition, it has been in a quarter, but it is that in all of 2022 the data is also scary.

A market that has been on the rise for more than 10 years, which took off in the 2000s and is now adding defeat after defeat, like all other sectors. Sales have largely stopped and as we are going to see, the numbers are really worrying given those of previous years and the rise they have had in no less than 23 years.


Smartphones suffer the biggest fall in their history

smartphone cameras

IDC is very clear about this: worldwide smartphone shipments have fallen a 18.3% year after year until touching the 300.3 million units for the fourth quarter of 2022. Never before in the history of this sector have bottoms been reached so quickly.

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We’re talking almost a quarter of the total volume in just three months, but what about all of 2022? Has the volume of shipments and therefore possible sales been maintained? Well no. Taking into account that at the beginning of 2022 everything looked more or less stable, annually and year after year it has been seen that that year the fall was also very strong with a -11.3%.

The total number of shipments was 1.210 million units. This seemingly huge number represents the lowest total recorded since 2013. Imagine what a tremendous blow it means:

“We have never seen shipments in the holiday quarter be lower than in the previous quarter. However, weak demand and high inventory caused vendors to slash shipments,” said Nabila Popal, research director at IDC.

Retailers, wholesalers and stores do not play it

Company Shipment Volumes 4Q22 Market Share 4Q22 Shipment Volumes 4Q21 Market Share 4Q21 change year over year
1.Apple 72.3 24.1% 85.0 23.1% -14.9%
2 Samsung 58.2 19.4% 69.0 18.8% -15.6%
3.Xiaomi 33.2 11.0% 45.0 12.2% -26.3%
4.OPO 25.3 8.4% 30.1 8.2% -15.9%
5. Alive 22.9 7.6% 28.3 7.7% -18.9%
Others 88.3 29.4% 110.2 30.0% -19.8%
Total 300.3 100.0% 367.6 100.0% -18.3%
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So what has happened in the last quarter of 2022? How is it possible that Christmas did not save furniture in this sector? Well, because it has been worthy of forgetting in shipments and almost the same in sales. Popal explains it clearly in the report:

“Strong sales and promotions during the quarter helped deplete existing inventory rather than fuel shipment growth. Suppliers are increasingly cautious on their shipping and planning, while realigning their focus on profitability.

Even Apple, which until now seemed immune, suffered a supply setback with unforeseen closures at its key factories in China. What this holiday quarter tells us is that rising inflation and mounting macroeconomic concerns continue to hamper consumer spending, even more than expected, and push any possible recovery. until the end of 2023″

Company 2022 Shipping Volumes Market share 2022 Shipping volumes 2021 Market share 2021 change year over year
samsung 260.9 21.6% 272.1 20.0% -4.1%
Manzana 226.4 18.8% 235.8 17.3% -4.0%
Xiaomi 153.1 12.7% 191.0 14.0% -19.8%
OPPO 103.3 8.6% 133.6 9.8% -22.7%
Alive 99.0 8.2% 128.3 9.4% -22.8%
Others 362.7 30.1% 399.1 29.3% -9.1%
Total 1205.5 100.0% 1359.8 100.0% -11.3%
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With update rates exceeding 40 months, we can already get an idea of ​​how this sector is at the moment. Caution is the more appropriate word, but fear follows close behind. There is talk that the channels are thinking twice before taking on any minimal excess inventory.

the supposed recovery of shipments of 2.8% What was forecast at the beginning of the year has just blown up, and as in the rest of the technology industry, 2023 is already turning into a year of losses, and that has just begun. The eyes, once again, are on 2024like hopes. What seems clear is that in a sector such as smartphones, registering the biggest drop in history is a warning to sailors about what is to come this year.


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