Unending Decline Streak
The global smartphone market seems to be on a never-ending downward trajectory as it marks the ninth consecutive quarter of decline. The shipments dropped by 8% in Q3 2023, reaching the lowest levels for a Q3 in a decade1. The persistent dip hints at a larger trend of subdued smartphone demand across the globe, further intensified by the market's major players experiencing drops in their share. Samsung and Apple, though retaining their top spots, witnessed a dip with market shares of 20% and 16% respectively during Q3 202321.
Performance of Market Giants
Samsung experienced a 13% decline in market share in Q3 2023 compared to the previous year. Despite this, the brand's Galaxy A series continued to perform well, although its foldable models received a mixed response. On the other hand, Apple's market share dropped by 9% year-on-year due to delayed deliveries of its recently launched flagship, the iPhone 151.
Chinese Brands Follow Suit
Chinese smartphone giants weren't spared from the decline either. Xiaomi, Oppo, and Vivo, occupying the third, fourth, and fifth positions in the market, reported sales declines. Xiaomi's market share shrank to 12%, while Oppo and Vivo both saw their market share drop to 8%1.
Anticipated Rebound
Despite the gloomy trend, there’s a glimmer of hope as market analysts predict a rebound in Q4 2023. The festive season, coupled with new model releases, is expected to spur sales. The strong performance in September is being seen as a positive sign for the upcoming quarter. The momentum is expected to continue till the year-end, beginning with the festive season in India, followed by the 11.11 sales event in China and ending with Christmas and end-of-year promotions across various regions1.
Final Take
The incessant decline in smartphone shipments underscores a shift in device replacement patterns, particularly in developed markets. However, the anticipated rebound in Q4 2023 provides a hopeful outlook for the global smartphone market. The coming months are crucial and will be closely watched by market analysts and stakeholders.
Sources: 91mobiles, Business Insider.
