Samsung retains top spot for 2022 as global smartphone shipments suffer largest-ever decline in Q4

Ganiu Oloruntade
Samsung retains top spot for 2022 as global smartphone shipments suffer largest-ever decline in Q4
Image Source: CNET.

2022 ended on a shaky note for the global smartphone market as shipments dropped by 18.3% year over year to 300.3 million units in the fourth quarter of last year, according to the Worldwide Quarterly Mobile Phone Tracker, released by the International Data Corporation (IDC), a global market intelligence provider.

Per the report, which provides insightful analysis through quarterly market share data by region, the drop represents the largest-ever decline in a single quarter. It also contributed to a steep 11.3% decline for the year.

Recall worldwide smartphone shipments declined 9.7% year over year to 301.9 million units in the third quarter of 2022, per previous data from the IDC Phone Tracker. It also predicted that Africa and emerging markets in Asia/Pacific, Latin America, and the Middle East would see a more significant double-digit decline in phone shipment for the rest of last year.

However, the market ended the year with shipments of 1.21 billion units, representing the lowest annual total since 2013.

Reasons for this include significantly dampened consumer demand, inflation, and economic uncertainties.

Read also: Africa’s smartphone market witnesses a further decline in Q3 of 2022 – IDC Tracker.

Apple led the pack in Q4 2022

Hit by global economic shocks, nearly every smartphone vendor experienced a supply chain constraint in Q4 2022. However, Apple finished the quarter in the top position, shipping 72.3 million units and having a 24.1% market share. This was a year-over-year decline of 14.9%. 

Samsung holds second place, having about 58.2 million units of its smartphones shipped and claiming a 19.4% market share. This represents a 15.6% year-over-year decline.  

Samsung retains top spot for 2022 as global smartphone shipments suffer largest-ever decline in Q4
Source: IDC Worldwide Quarterly Mobile Phone Tracker.

Xiaomi captured the third position, registering a 15.6% decline in the fourth quarter of 2022 with an 11.0% market share and shipments of 33.2 million units. Trailing behind is OPPO, with an 8.4% market share, thanks to its shipments of 25.3 million units, to hold the fourth place.

Surprisingly, Vivo clinched the fifth spot, though it registered the highest number of shipments in Q4 2022, with 88.3 million units to claim 29.4% market share. It, however, recorded a year-over-year decline of 19.8%.

Samsung retains the top spot for 2022

Overall, Samsung continued its dominance in the global smartphone shipment market in 2022, recording 260.9 million units in shipments to claim a 21.6% market share. This represents a slight 4.1% year-over-year decline. According to its earnings guidance for Q4 2022, Samsung recorded a 9% drop in revenue in the last quarter of last year and a whopping 69% fall in operating profit compared to Q4 2021.

Despite its impressive run in the fourth quarter of 2022, Apple ended the year in the second spot, shipping 226.4 million units with an 18.8% market, marking a 4.0% year-over-year decline. The reason for this isn’t far-fetched. Apple had run into troubles with its primary supplier Foxconn in Taiwan following the imposition of COVID-19 restrictions on workers, which led to unrest. According to this report, the iPhone maker, which lost $1 billion a week in lost sales, is now considering multiple sources for components and factories in different locations.

Samsung retains top spot for 2022 as global smartphone shipments suffer largest-ever decline in Q4
Source: IDC Worldwide Quarterly Mobile Phone Tracker.

Holding the third position is Xiaomi, with a 12.7% market share, thanks to its 153.1 million units in shipments — albeit a 19.8% decline compared with the previous year.

With 103.3 million and 99 million units shipped, respectively, and market shares of 8.6 per cent and 8.2 per cent, OPPO and Vivo claim the fourth and fifth positions. Vivo saw a 22.8% year-over-year shipment decline, while OPPO saw a 22.7% year-over-year decline.

Read also: Nigerians need over 300 workdays to purchase Apple’s latest iPhone 14 Pro.

2023 is likely to be rocky for the global smartphone market

“This tough close to the year puts the 2.8% recovery expected for 2023 in serious jeopardy with heavy downward risk to the forecast,” IDC said in its report.

Nabila Popal, research director with IDC’s Worldwide Tracker team, also said in the report that weakened demand and high inventory caused vendors to cut back drastically on shipments in the fourth quarter of 2022.

“Heavy sales and promotions during the quarter helped deplete existing inventory rather than drive shipment growth. Vendors are increasingly cautious in their shipments and planning while realigning their focus on profitability.”

“Even Apple, which thus far was seemingly immune, suffered a setback in its supply chain with unforeseen lockdowns at its key factories in China. What this holiday quarter tells us is that rising inflation and growing macro concerns continue to stunt consumer spending even more than expected and push out any possible recovery to the very end of 2023,” Nabil said.

For Anthony Scarsella, research director with IDC’s Worldwide Quarterly Mobile Phone Tracker, the global smartphone market will continue to witness a dwindle in consumer demand due to uncertainties in most markets.

“With 2022 declining more than 11% for the year, 2023 is set up to be a year of caution as vendors will rethink their portfolio of devices while channels will think twice before taking on excess inventory. However, on a positive note, consumers may find even more generous trade-in offers and promotions continuing well into 2023 as the market will think of new methods to drive upgrades and sell more devices, specifically high-end models.”


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