Apple was the only major phone provider to increase shipments in the third quarter as smartphone shipments worldwide fell 9.7% year-over-year to 301.9 million units in the third quarter of 2022 (3Q22 ), according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Cell Phone Locator. The decline marks the largest decline ever in the third quarter and fifth consecutive quarter of decline for the smartphone market as shipments continue to struggle amid weakening global demand and economic uncertainties.
“Most of the decline came from emerging markets where lack of demand, rising costs and inflation impacted consumers with lower disposable income,” said Nabila Popal, director of research with the IDC’s Worldwide Tracker team, in a note. “With high inventory arriving in the quarter, OEM shipments and orders were further reduced in an effort to run out of inventory. Although Chinese suppliers continue to suffer the most, all suppliers have been affected, including Samsung and Apple. Although Apple is the only supplier to deliver positive growth this quarter, it still faced challenges as its growth slowed in many markets, including China, due to the poor macroeconomic situation. Looking ahead to 2023, the expected market recovery, which we continue to believe will happen, will be pushed further into the year. In addition, we now expect a sharper drop in shipments for 2022 and a softer recovery in 2023. “
From a regional point of view, all regions except Central and Eastern Europe are projected to decline in 3Q22 and for the whole year. Previous expectations for China are expected to remain relatively unchanged with a drop of just over 12% for the quarter. Given China’s size, this has a significant impact on global results. Developed markets such as North America, Western Europe and Japan will do moderately better, but this still implies low to medium single-digit declines. Emerging markets in Asia / Pacific, Latin America, the Middle East and Africa are expected to see more significant double-digit declines.
“We are seeing some unique dynamics develop around the world when it comes to smartphone sales,” said Ryan Reith, group vice president with IDC’s Worldwide Mobile and Consumer Device Trackers, in a statement. “Developed markets that often sell more premium devices fare better than emerging markets where smartphones sell at a fraction of the cost. We believe this is largely supported by the expansion of installment plans offered through telecom companies, retail channels and even directly from suppliers. Trade-in offers promotional activity also supports this change. However, as we look to the next year and beyond, if the global market is to grow, it will need a strong recovery in emerging markets to make it happen. “
Despite the challenging environment, the positioning of suppliers has not changed since last quarter. Samsung held the top spot with a 21.2% share, Apple came second with a 17.2% share, while Xiaomi came third with a 13.4% share. vivo and OPPO ended the quarter at par * for fourth place, each with an 8.6% share. Except for Apple, all major vendors have experienced declines year after year. However, while Samsung and Xiaomi experienced single-digit dips, vivo and OPPO continued to experience steep double-digit declines.
Notes:
- IDC declares a statistical break even in the global smartphone market when there is a difference of 0.1% or less in the share of revenue or shipping between two or more suppliers.
• Data is preliminary and subject to change.
• Corporate shipments are branded device shipments and exclude OEM sales for all suppliers.
• The “Company” represents the current parent company (or holding) for all brands owned and managed as a subsidiary.
• Figures represent new shipments only and exclude refurbished units.
MacDailyNews takes: Only Apple.
Real iPhones vs. Poor iPhones. As always. – MacDailyNews, April 22, 2022
Apple iPhone customers are the most recession-proof smartphone buyers. – MacDailyNews, September 7, 2022
It is the lousy Android peddlers who will be most affected by rampant inflation and recession, not Apple. – MacDailyNews, September 16, 2022
The same goes for Mac, iPad, Apple Watch, and Apple Services customers on personal computers, tablets, smartwatches, and subscriptions, respectively. – MacDailyNews, October 13, 2022
The big tech company most resilient to inflation and recession is Apple, thanks to its superior customer demographics. – MacDailyNews, October 27, 2022
When your money becomes a major concern, you want to spend it wisely. In China and everywhere, if it’s not an iPhone, it’s not an iPhone. Also, if it’s not an iPhone Pro, it’s not an iPhone Pro. – MacDailyNews, October 27, 2022
Bottom line: those who are satisfied with Android devices are not the same as iOS users. The fact is that iOS users are worth much more than Android settlers to developers, advertisers, third party accessory manufacturers (speakers, cases, chargers, cables, etc.), vehicle manufacturers, musicians, TV show producers, producers of movies, book authors, couriers, retailers, podcasters … The list goes on and on.
Customer quality matters. Much.
Easy “analyzes” that look only at market share (units), equating an Android settler to an iOS user, make a fatal mistake by mistakenly equating the users of each platform one to one.
When it comes to mobile operating systems, all users are simply not the same. – SteveJack, MacDailyNews, November 15, 2014
Android is sent to users who are, in general:
a) confused as to why they should choose an iPhone over a lower knockoff and therefore may be less inclined to understand / explore the capabilities of their devices or rely on their devices with credit card information for shopping; and / or
b) Get enticed with “Buy one get one free”, “Buy one, get two or more free” or similar offers ($ 100 Gift Cards with purchase).
Neither customer type is the cream of the crop when it comes to successful engagement or coveted demographics; closer to the bottom of the barrel than to the top, in fact. Android can be widespread and still demographically inferior precisely because of the way in which and to whom Android devices are marketed. BOGO’s never-ending promotions attract a seemingly endless stream of cheap freetards, just like the senseless TV commercials about robots or exploding holes in concrete walls attract fleshheads and dulls – not exactly the best demographics unless you. is peddling muscle building powders or fat monkey suits.
Google made a crucial mistake: It gave away Android to the “partners” who pushed and continue to bring the product into the hands of the exact opposite type of user that Google needs to make Android thrive. So, Android is a stagnation of second-rate app versions, or worse, that are only downloaded when free or ad-supported, but the Android user is notoriously cheap, so ads don’t sell much because they don’t work great. . You would have guessed that Google would have understood this, but you would have guessed wrong.
Google created a platform that relies heavily on advertising support, but sold it to precisely the type of customer who is least likely to sponsor ads.
IOS users are the ones who buy apps, so developers focus on iOS users. IOS users buy products, so accessory manufacturers focus on iOS users. IOS users have money and a proven willingness to spend it, so vehicle manufacturers focus on iOS users. Etc. Android may have the Hi Haw demographic. Apple doesn’t want it or need it; it’s much more of a problem than it’s worth it. – MacDailyNews, November 26, 2012
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