Samsung’s smartphone sales grew 9% YoY in April 2022, capturing 24% of the global smartphone market, according to Counterpoint Research’s Market Pulse Service. This is the highest monthly market share for Samsung since April 2017. The company’s sales grew despite the global smartphone sales declining 8% YoY during the same period. In fact, it was one of the only few brands to grow against the market decline.
With a 17 percent market share with the iPhone 13 continuing to be in strong demand, Apple finished in second. Chinese companies Oppo, Vivo, and Xiaomi, experienced market share reductions of 10%, 9%, and 14%, respectively. The company claimed that regional unrest and economic headwinds should be blamed for the declining demand.
Demand has started to wane following economic headwinds and regional uncertainty, the report noted. “Vendors were forced to review their tactics in Q2 as the outlook for the smartphone market became more cautious,” said Canalys Research Analyst Runar Bjorhovde. “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,” he added.
Economic headwinds, sluggish demand and inventory pileup have resulted in vendors rapidly reassessing their portfolio strategies for the rest of 2022. Falling demand is causing great concern for the entire smartphone supply chain. “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,” said analyst Toby Zhu.
Consumers have broadly slowed down their upgrade cycles, as phones have gotten better and more robust. The phones themselves have grown more expensive in the process, adding an air of consumer caution amid economic uncertainty, including unemployment and inflation. Add to that chip shortages and supply chain bottlenecks, and you’ve got a recipe for an industry that has crashed back down to earth.