Global smartphone market to gain momentum only in 2nd half of 2023

The global smartphone market remains challenging and it will gain momentum in the second half of the year as channel inventories reach healthier levels, a report has shown. Shipments will stabilise around the levels from 2022 as we move into the middle of 2023, according to market research firm Canalys.

"Decline rates will start to improve soon, although this is more connected to the stark contrast between 2022 and 2023 shrinking," said research analyst Lucas Zhong. Vendors are cautiously approaching the market with profitability targets, lean operations and inventory clearing as top priorities.

The global smartphone shipments fell by 13 per cent to 269.8 million units in Q1 2023. Samsung reclaimed its pole position and shipped 60.3 million units, driven by a refreshed product portfolio.

Apple came in second with 58 million shipments. It was the only top five vendor to grow year-on-year, which gave it a strong 21 per cent market share. Xiaomi defended its number three position with 30.5 million shipments while OPPO and vivo completed the top five, shipping 26.6 million and 20.9 million units, respectively, securing 10 per cent and 8 per cent market share.

"Samsung's performance shows early signs of recovery after a tough end to 2022," said Runar Bjorhovde, Canalys analyst. "The rebound is particularly connected to product launches, which drove an increase in sell-in volume. Still, Samsung will have to navigate through a difficult landscape going forward, particularly as entry-level device inventory remains high," Bjorhovde added. The mid-range price segment has started to recover following huge declines last year.

"However, mid-range demand in 2023 will remain limited due to the macroeconomic challenges and missing differentiators within this price band," said Zhong.