NEW DELHI: The global smartphone market declined by 14% year-on-year and 7% quarterly to 280.2 million units in Q1, 2023, according to the latest research from Counterpoint’s market monitor service.
The report also noted that Apple and Samsung cumulatively captured 96% of global smartphone operating profits in Q1 and remained the most profitable brands.
The revenue and profits of China’s Xiaomi, Oppo, and Vivo declined YoY in the quarter. “Smartphone shipments declined further in Q1, 2023, following the weakest holiday-season quarter since 2013, as the slower-than-expected recovery in China was marred by alarming bank failures on both sides of the Atlantic further weakening consumer confidence in the face of unrelenting market volatility,” said Harmeet Singh Walia, Senior Analyst at Counterpoint.
The smartphone market was also hit by some major brands supplying fewer new devices to a market struggling with high inventories at a time when consumers are choosing to renew less often, but with more durable smartphones when they do buy. Consequently, global smartphone revenue and operating profit also declined, although not as much as shipments. This was due, in part, to the lower-than-usual decline in Apple’s shipments, to 58 million units in Q1 2023. Apple managed to capture nearly half of all smartphone revenues,while Samsung’s shipments declined 19% YoY.