Smartphone sales fell 9% in Q2 2022 due to soaring inflation, but iPhone 13 remains in high demand: Report

Worldwide smartphone shipments fell 9 percent year on year in Q2 2022. Demand has started to wane following economic headwinds and regional uncertainty. Samsung took first place with a 21 percent market share as it strengthened its low-end A series supply. Apple came second with a 17 percent share as the iPhone 13 remained in high demand. Xiaomi, OPPO and vivo continued to struggle in China, suffering double-digit declines to take 14 percent, 10 percent and 9 percent market shares respectively.

“Vendors were forced to review their tactics in Q2 as the outlook for the smartphone market became more cautious,” said Canalys Research Analyst Runar Bjørhovde. “Economic headwinds, sluggish demand and inventory pileup have resulted in vendors rapidly reassessing their portfolio strategies for the rest of 2022. The oversupplied mid-range is an exposed segment for vendors to focus on adjusting new launches, as budget-constrained consumers shift their device purchases toward the lower end.”

“Falling demand is causing great concern for the entire smartphone supply chain,” said Canalys Analyst Toby Zhu. “While component supplies and cost pressures are easing, a few concerns remain within logistics and production, such as some emerging markets’ tightening import laws and customs procedures delaying shipments.

In the near term, vendors will look to accelerate sell-through using promotions and offers ahead of new launches during the holiday season to alleviate the channel’s liquidity pressure. But in contrast to last year’s pent-up demand, consumers’ disposable income has been affected by soaring inflation this year. Deep collaboration with channels to monitor the state of inventory and supply will be vital for vendors to identify short-term opportunities while maintaining healthy channel partnerships in the long run.

Meanwhile, Apple is reportedly planning to launch a 6.1-inch iPhone 14, a 6.1-inch iPhone 14 Pro, a 6.7-inch iPhone 14 Max, and a 6.7-inch iPhone 14 Pro Max in September this year and now a new report has claimed that the demand for the upcoming iPhone 14 series in China is likely to surpass demand for the iPhone 13 models.

The post Smartphone sales fell 9% in Q2 2022 due to soaring inflation, but iPhone 13 remains in high demand: Report appeared first on BGR India.