The decline of smartphones will continue until 2023, according to an Apple supplier


Maruta Manufacturing – which makes components for a wide range of companies, including Apple – says it expects the current smartphone’s decline to continue into 2023.

He expects consumers to keep their current phones for longer periods than they do now, although he points out that high-end phones may be the exception…

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The long-standing trend in the smartphone market has been for upgrade cycles to lengthen as the technology plateau, with more evolutionary improvements than revolutionary ones. In the United States, for example, the average person now upgrades their phone every three to four years.

Over the past two years, chip shortages have also affected production levels, which means that the smartphone industry is constrained by both supply and demand.

Recently, rampant inflation has led many people to reduce or eliminate spending on luxuries such as new phones.

All these factors led to the smartphone’s decline, with a report released yesterday indicating that shipments have declined for the third consecutive quarter, and the latest number indicates a decline of 9% year-on-year.

Marotta says smartphone stagnation will continue

Maruta Manufacturing has first-hand experience with this recession. The Japanese company makes a range of components that are used by almost all smartphone companies, including Apple. Its stock price is down 20% this year as demand for its products has fallen by double digits.

President Norio Nakajima said Bloomberg He does not expect much improvement, if any, in the coming year.

“The momentum will not return at least during the 2022 fiscal year and the situation is not positive in the coming period,” Nakajima said. “Demand for consumer electronics has fallen dramatically and these Chinese manufacturers are not feeling well” […]

“Consumers might have been willing to buy new phones even with small upgrades if the economy was in better shape,” Nakajima said, citing higher interest rates by central banks around the world as a big factor. “What I’m afraid of is that smartphones will become more of a commodity and people will wait longer before upgrading.”

Nakajima did not discuss specific brands, but noted that Chinese companies were the hardest hit, and high-end phones were the best.

One silver lining that Morata’s boss noted is the constant demand for high-end phones even during the economic downturn.

This is in line with yesterday’s report, which saw Apple continue to enjoy year-over-year growth in iPhone shipments, and the company’s market share increased significantly.

Photo: Daniel Corby/Unsplash

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