Global Smartphone Market Drops 9.7% YoY in Q3; only apple in green in top 5

According to preliminary data from the International Data Corporation (IDC), global smartphone shipments fell 9.7 percent year-on-year to 301.9 million units in the third quarter of 2022 (3Q22). In the top five, Apple is the only smartphone company with positive growth of 1.6 percent with 51.9 million shipments in the third quarter.

“Most of the decline came from emerging markets where lack of demand, rising costs and inflation impacted consumers with lower disposable incomes,” said Nabila Popal, research director for IDC’s Worldwide Tracker team. “While Apple is the only vendor to deliver positive growth this quarter, it still faced challenges as growth in many markets, including China, was held back by the poor macroeconomic environment.”

Despite the changing market dynamics, the positioning in the top five has not changed compared to last quarter. According to data from IDC, Samsung remained in first place with a share of 21.2 percent, Apple was second with a share of 17.2 percent and Xiaomi was third with a share of 13.4%. Vivo and OPPO ended the quarter in joint fourth position, each with a share of 8.6 percent. With the exception of Apple, all other smartphone brands in the top five suffered year-over-year declines. While Samsung and Xiaomi recorded a single-digit drop, Vivo and OPPO continued to fall in double-digit numbers.

Apple Thursday announced an eight percent year-over-year profit to $90.1 billion in third-quarter revenue. During the company’s earnings call late Thursday, Apple said it had set a new revenue record for the quarter and continues to perform incredibly well in emerging markets with very strong double-digit growth in India, Southeast Asia and Latin America.

Apple’s positive growth in the September quarter was attributable to performance in emerging markets where other smartphone brands struggled due to macroeconomic factors such as inflation.

“We’re seeing a unique dynamic emerging around the world in smartphone sales,” said Ryan Reith, group vice president at IDC’s Worldwide Mobile and Consumer Device Trackers. “Developed markets that often sell more premium devices are outperforming emerging markets where smartphones are sold at a fraction of the cost. We believe this is largely supported by the expansion of installment plans offered through telcos, retail channels and even direct Promotional activity around trade-in offers is also supporting that shift, but looking to next year and beyond, as the global market starts to grow, it will take a strong recovery in emerging markets to make that happen.”

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