Global smartphone sales fell 9% in the second quarter of 2022 according to a recent report by Canalys.
The reason for the decline in smartphone sales is due to economic problems around the world, Samsung took the first place with 21% of the market, followed by Apple with a 17% share.
“Resellers were forced to review their tactics in the second quarter as the outlook for the smartphone market became more cautious,” said Canalys Research Analyst Runar Bjørhovde. “Economic headwinds, sluggish demand and a backlog of inventory have caused sellers to rapidly reassess their portfolio strategies for the rest of 2022. The oversupplied mid-range is an exposed part for sellers to focus on adjusting new launches, as budget-constrained consumers shift their hardware purchases toward the lower end. “.
“The drop in demand is causing great concern to the entire smartphone supply chain,” said Toby Chu, Canalys Analyst. While component supplies and cost pressures decline, there are still some concerns in logistics and production, such as tightening import laws in some emerging markets and customs measures delaying shipments. In the near term, sellers will be looking to speed up the sale with promotions and offers ahead of new launches during the holiday season to ease the channel’s liquidity pressure. But unlike pent-up demand last year, disposable income for consumers has been affected by higher inflation this year. Deep collaboration with channels to monitor inventory and supply status will be vital for vendors to identify short-term opportunities while maintaining healthy channel partnerships in the long-term.”
You can see the full report from Canalys regarding the current smartphone market and device sales in Q2 at the link below.
image rights: Kenny Lees
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