2022 was the worst year in a decade for the smartphone market, said Canalys

According to a Canalys report, global smartphone shipments dropped by 11% in 2022 compared to 2021. This means 1.2 billion units shipped less to market. In the fourth quarter, the decline was worst: 17%.

According to Canalys, Samsung ended 2022 in leadership with 22% of the market share. Apple is the second with 19% of the market share. Xiaomi is the third with 11%. OPPO is the fourth with 10%, and Vivo is the fifth with 8%. All other companies together have 26%.

Fourth quarter

In the fourth quarter, despite Apple facing reduced demand and manufacturing problems in the Zhengzhou factory, Apple conquered the first place with 25% of the market share. Samsung was the second with 20% of the market share. Third, Xiaomi with 11% of the market share. OPPO in fourth position (10%) and Vivo in fifth position (8%).

2022: difficult year

According to Runar Bjørhovde, Canalys Research Analyst, smartphone vendors have struggled in a challenging macroeconomic environment throughout 2022. “Q4 marks the worst annual and Q4 performance in a decade,” said Bjørhovde.

Bjørhovde said that the channel is highly cautious with taking on new inventory, contributing to low shipments in Q4. “Backed by strong promotional incentives from vendors and channels, the holiday sales season helped reduce inventory levels. While low-to-mid-range demand fell fast in previous quarters, high-end demand began to show weakness in Q4. The market’s performance in Q4 2022 stands in stark contrast to Q4 2021, which saw surging demand and easing supply issues.” said the Canalys Research Analyst.

2023: caution

Le Xuan Chiew, Canalys Research Analyst, said that vendors will approach 2023 cautiously, prioritizing profitability and protecting market share. “Vendors are cutting costs to adapt to the new market reality. Building strong partnerships with the channel will be important for protecting market shares as difficult market conditions for channel partners and vendors can easily lead to strenuous negotiations.”, said Chiew.