Apple iPhone 13 and Samsung Galaxy S22 prevail – but the smartphone market is slipping globally
Global smartphone shipments in the second quarter of 2022 were the lowest since the pandemic hit in 2020, with 287 million units shipped in the quarter.
According to new figures from Canalys, Samsung shipped 6% more smartphones than in the same quarter a year ago, but it shipped 16% fewer smartphones than last quarter. Still, with 61.8 million smartphones shipped, it was the top vendor this quarter with a 21% share, ahead of Apple, which shipped 48.5 million iPhones and held a 17% market share.
“Despite year-on-year growth of 6%, Samsung’s shipments fell 16% from the previous quarter as the vendor struggled with unhealthy inventory levels, particularly in the midrange,” said Runar Bjørhovde, analyst at Canalys.
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Apple reported during its fiscal third quarter results last week that iPhone revenue rose 3% year on year to $40.67 billion, while Mac revenue was down 10% on year to $7.38 billion, and iPad revenue was down 2% year over year to $7.22 billion. . Even growth in Apple’s fast-growing services business had fallen from 17% in the second quarter to 12% this quarter.
Apple chief Tim Cook told CNBC he’s seeing high costs for logistics, wages and some silicon components. He noted that Apple was now hiring “deliberately”.
Xiaomi was in third place with 39.6 million units in the second quarter of 2022, while OPPO was in fourth place with 27.3, and Vivo was in fifth place with 25.4 million units, according to Canalys.
Canalys analyst Toby Zhu sees strange times ahead for the tech industry’s supply chain issues: Instead of shortages, suppliers now see the possibility of oversupply amid weak demand settles down.
“Supply chain shortages are no longer the most pressing issue, as component orders are quickly reduced and suppliers begin to worry about oversupply,” Zhu said.
“This has resulted in price reductions for key components, which lowers costs for suppliers. Suppliers could use the additional savings to improve the competitiveness of new launches’ products in the second half of the year. At the same time, it could make the elimination of older models even more difficult.The oversupply situation requires more supplier planning capabilities than the shortage period.
China and the global model
Canalys also reported that shipments to mainland China fell 10% year-on-year in the second quarter of 2022, to 67.4 million units. Key cities like Shanghai emerged in early June after months of COVID-19 lockdown, but the nationwide “618” online shopping event on June 18 failed to have the impact it had in the second quarter of 2021 – excluding Apple.
Apple shipped 9.9 million iPhones in the quarter and was in fifth place, with shipments growing 25% year over year. Honor was in second place with 13 million units shipped, representing an 88% year-over-year growth. Vivo retained the top spot with 13.2 million units shipped, but that was down 28% year-over-year.
“Apple also benefited from resilient demand in the high-end segment, despite severe shutdowns in its key cities. The vendor’s active marketing during the promotional period was also a key contributing factor,” Zhu said.
Cook said Apple saw sales in Chinese cities where shutdowns occurred in the first quarter rebound in June, particularly towards the end of the month, in line with 618 sales.
Separately, Strategy Analytics reported that global smartphone shipments fell 7% year-on-year to 291 million units in the second quarter of 2022. This put Samsung in the lead with 63 million units shipped, giving it leaves a share of 22%. He said demand remained strong for the new flagship Galaxy S22 series, especially the more expensive S22 Ultra model. Apple shipped 48 million iPhones, up 3% year-on-year, leaving it with a 16% share.
This is Apple’s highest second-quarter market share in the past 10 years, at the expense of major Chinese brands that are hampered by poor performance in domestic and overseas markets. Apple had a strong quarter, led by the iPhone 13 series, which continued to increase volumes in the United States, China and other key markets.