Tag: smartphone shipments

  • Transsion Achieves Record Quarter with TECNO’s Premiumization and Regional Expansion

    Transsion Achieves Record Quarter with TECNO’s Premiumization and Regional Expansion

    According to Counterpoint's Market Monitor service, TECNO, the biggest brand in Transsion's family, experienced a significant growth in smartphone shipments across all regions in Q3 2023. The shipments increased by an impressive 62% YoY, contributing to Transsion's overall results with a 36% YoY increase in smartphone shipments for the quarter.

    TECNO's remarkable growth has led to the brand becoming the world's 9th largest smartphone brand, capturing 4% of the global smartphone market in Q3 2023. This achievement is particularly noteworthy as TECNO's market share has more than tripled in just three years. It has also propelled Transsion to become one of the top 5 smartphone original equipment manufacturers (OEMs) globally.

    The growth in TECNO's shipments can be attributed to an improvement in product mix. The brand has expanded the proportion of higher-value devices sold, indicating a shift towards more premium offerings. According to Counterpoint's Global Handset Model Sales service, almost all TECNO smartphones now come equipped with 4G or 5G connectivity. The introduction of 5G smartphones in Q1 2022 has led to a rapid increase in volume, with shipments growing by over 600% YoY by Q3 2023.

    Furthermore, TECNO has witnessed a significant increase in sales volume for its high-end CAMON series and premium-end PHANTOM series, surpassing the company's overall growth rates with a 53% YoY increase. The PHANTOM series, in particular, has seen a remarkable rise in popularity, now accounting for nearly 5% of TECNO's global sales. This growth is a positive indication that TECNO's efforts to compete in the mainstream global smartphone industry are paying off, as the brand gains acceptance among consumers outside of Africa.

    Looking ahead, the growth trajectory for TECNO appears favorable due to various megatrends. Factors such as urbanization, the rapid development of connectivity infrastructure, the migration from feature phones to smartphones, the availability of cheaper components, and the increasing adoption of digital services are expected to gather pace. These trends provide a promising outlook for TECNO's future growth.

    Overall, TECNO's impressive performance in Q3 2023 showcases its ability to expand its market share and offer competitive smartphones with advanced connectivity options. The brand's success not only solidifies its position within Transsion's family but also establishes it as a significant player in the global smartphone market.

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  • Expansion of Middle Eastern Smartphone Market Defies Global Downturn

    Expansion of Middle Eastern Smartphone Market Defies Global Downturn

    Global Smartphone Shipments Decline, Yet Middle East Sees Growth

    In the current year, there has been a decrease in the volume of smartphones transported globally. Sales of smartphones have experienced a downturn across all significant markets, encompassing North America, Europe, and Southeast Asia. While there’s a slight chance of a rise post the ongoing festive sales, the overall year has remained lackluster for global shipments. In a surprising turn of events, the smartphone market in the Middle East has defied the signals of the global smartphone market, marking a substantial 21% yearly growth in Q3 2023.

    Details on Smartphone Shipments in the Middle East

    According to a recent research report by Canalys, smartphone shipments in Middle Eastern nations (excluding Turkey) have seen a remarkable surge of 21%, amounting to 12.0 million shipments. A surge in business expansion owing to local demand stands as one of the primary factors propelling this growth. Job and business opportunities have seen a remarkable rise in recent times, showing resilience in the face of declining oil prices.

    The markets in Iraq and Saudi Arabia have taken off to unprecedented heights, with growth rates of 57% and 46% on a year-over-year basis, respectively. Despite facing certain limitations and challenges concerning importing in US dollars, Iraq has witnessed the most significant growth. In contrast, the market in the United Arab Emirates has only experienced a marginal 2% uptick in shipments, mainly fueled by an increase in tourist arrivals. Both Qatar and Kuwait have shown a slight decline due to subdued demand in these nations.

    In Q3 2023, Samsung commands a 31% share of total smartphone shipments, followed by Transsion at 22%, Xiaomi at 15%, Apple at 11%, and Realme in the fifth spot with a mere 4% share.

    Preference for Budget Smartphones in the Middle East

    Unlike the markets in Southeast Asia, the Middle East displays a stronger inclination towards budget smartphones, typically falling under the sub-$200 category. The majority of sales are driven by Chinese brands like Xiaomi, Transsion, and Honor.

    "TRANSSION is steadily expanding its reach in response to the growing mass-market segment amid wider economic uncertainties. Infinix has launched exclusive models in collaboration with Noon in Saudi Arabia, while Tecno has pushed its Camon 20 with enhanced incentives in Iraq. Meanwhile, Xiaomi and HONOR are aiming to break into the premium market with attractive incentives and aggressive promotional strategies, seeking to sway customers from established brands through consistent investment," shares Manish Pravinkumar, a Senior Consultant based in Dubai at Canalys.

    Motorola is witnessing a boost in its enterprise business growth within the GCC region. However, Samsung and Apple maintain their positions with robust distribution networks and ecosystem strategies, respectively.

    Furthermore, emerging brands are intensifying their marketing efforts to drive sales. While Oppo and Honor are entering the foldable phone market to rival Samsung’s dominance, customers in Qatar, Kuwait, and Saudi Arabia may still hesitate to switch brands. Affordability, aspirational value, and product availability will serve as key factors for new players, with initiatives like Buy Now Pay Later gaining ground through platforms such as Tabby and Tamara, proving advantageous for both retailers and consumers, as noted by Pravinkumar.

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  • Europe’s Smartphone Shipments Decline Lessens, Fostering a Shift towards Sustainable Growth by 2024

    Europe’s Smartphone Shipments Decline Lessens, Fostering a Shift towards Sustainable Growth by 2024

    Samsung and Apple Sales Saga in Europe – Q3 2023

    According to a recent report by Canalys, smartphone shipments have seen a continuous decline, but there is hope for a slight increase in demand next year. The decline has been narrowed to 6%, with a total of 32 million shipments in Q3 2023. Despite this decline, Samsung and Apple have managed to retain their top positions in the market, with a market share of 25% and 22% respectively. Additionally, Xiaomi, Motorola, and TCL have seen good sales in the quarter and are expected to experience overall sales growth in Europe.

    Challenges for Apple and Samsung

    Both Apple and Samsung have faced challenges this quarter. Retailers have been trying to reduce stocks of old smartphones, which has led to a decline in shipments. Samsung attempted to shift its focus from the Galaxy A Series to the more profitable mid-range smartphone, the S Series Flagship, and foldable devices. This strategy has resulted in resilient demand. On the other hand, Apple's USB Type-C cable-led iPhone 15 has seen an increase in shipments by 59%. However, to reduce overstocking of iPhone 14 and older models, retailers temporarily paused shipments, resulting in an overall decrease in shipments in Q3 2023.

    Market Share Breakdown

    Samsung remains at the top with a 35% overall smartphone market share, while Apple follows closely behind with a 22% market share. Xiaomi has seen strong demand in the mid-range segment with its Redmi Series, capturing 19% of the market share. Motorola and TCL have gained 5% and 3% market share respectively.

    Growth in Low-to-Mid-Range Segment

    Xiaomi, Motorola, and TCL have registered significant growth in shipments, particularly in the low-to-mid-range segment. Samsung's shift in focus from the low-end to the high-end market has created an opportunity for these OEMs to thrive. Xiaomi has experienced the largest growth, thanks to the sale of its Redmi and Redmi Note 12 models in the Central and Eastern Europe regions. Motorola has also performed well, with a 30% year-on-year increase in shipments.

    A Promising 2024 for Smartphone OEMs in Europe

    Canalys predicts that the European smartphone market will grow by 4% in 2024. The remainder of this year will be crucial for vendors as they seek to improve their performance in 2023 and start 2024 with positive momentum. It is important for them to clear out channel inventory ahead of new product launches in the first half of 2024. Market experts believe that the European market will see improvements in 2024, driven by the refresh cycle of mid-range devices purchased in 2020 and 2021. Additionally, other factors such as positive market momentum and ongoing festive season discounts are expected to contribute to increased sales in the coming year.

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  • Canalys predicts global smartphone market to rebound in 2024

    Canalys predicts global smartphone market to rebound in 2024

    Global Smartphone Market Shows Signs of Recovery in 2024

    According to a report by Canalys, the global smartphone market is expected to show signs of recovery in 2024, with a projected year-over-year drop of only 5% in 2023. This stabilization is primarily attributed to the Middle East, Africa, and Latin America, which are expected to return to growth at rates of 9%, 3%, and 2% respectively in 2023.

    Positive Outlook Amidst Challenges

    Although smartphone shipments still remain over 20% below their peak in 2017, there is a silver lining. Consumers are now placing more value on their devices, with average selling prices exceeding US$440 (~Rs 36,600) as compared to US$332 in 2017.

    Emerging Markets as Catalysts for Growth

    Emerging markets, particularly in the Asia Pacific region, are projected to be the primary catalysts for the growth of the smartphone market. It is estimated that 33% of all new smartphones shipped in 2024 will be destined for this region.

    Optimistic Projections for the Future

    Canalys predicts that smartphone shipments may grow by 4% and reach 1.17 billion units in 2024. Furthermore, the global market is expected to ship 1.25 billion units in 2027, achieving a compound annual growth rate (CAGR) of 2.6% from 2023 to 2027.

    Regional Variances

    While North America is the only region expected to experience a decline in smartphone shipments in 2024, with a projected 6% drop, other key markets are forecasted to grow. The Asia Pacific region is anticipated to grow by 6%, while the Middle East and Africa are projected to grow by 7% and 5% respectively.

    In conclusion, the global smartphone market is poised for recovery in 2024, with emerging markets and increased consumer value driving growth. Despite the challenges faced, the market is expected to rebound and experience steady growth in the coming years.

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  • Q3 2023 Sees Slow Growth in Europe Smartphone Shipments

    Q3 2023 Sees Slow Growth in Europe Smartphone Shipments

    Smartphone Shipments in Europe Decline in Q3 2023

    According to a recent report by Counterpoint Research for Market Monitor Service, smartphone shipments in Europe experienced an 11% year-on-year decline in the third quarter of 2023. This decline aligns with the global trend of decreasing smartphone shipments. Major players in the industry, including Samsung and Apple, faced their worst quarters since 2011 and 2014, respectively.

    Decline in Western and Eastern Europe

    The report reveals that the demand for smartphones in Western Europe dropped by 8%, while Eastern Europe experienced an even steeper decline of 15%. The primary factors contributing to this slump in sales are the ongoing economic challenges and geopolitical issues in the region.

    Market Share of Leading OEMs

    Despite the overall decline in shipments, Samsung managed to maintain its position as the market leader with a 32% market share. Apple followed closely with a 24% market share, while Realme secured a 22% market share. Honor, which has seen an 8% growth compared to the previous year, claimed a 4% market share.

    Chinese OEMs Making an Impact

    Research Analyst Harshit Rastogi commented on the statistics, stating that although Q3 2023 witnessed the lowest Q3 smartphone shipments since 2011, certain OEMs have managed to establish a foothold in the market. Chinese brands such as TECNO and Infinix, particularly in Russia, have gained traction. Additionally, Honor is performing well in Western Europe. While the market shares of the top players remain unchanged, Chinese OEMs are reshuffling their ranks among themselves.

    Outlook for Key Players

    Samsung’s position in the market remains strong due to the demand for its foldable smartphones. Apple is expected to boost its sales in the coming quarter with the release of the iPhone 15 series. However, Xiaomi is facing backlash from some Western European countries due to its presence in the Russian market, resulting in a 13% decline in its market share. Oppo is also losing ground in Europe due to various issues. Surprisingly, Honor, TECNO, and Infinix have experienced remarkable growth compared to the previous year.

    Optimism Amidst Challenges

    Associate Director Jan Stryjak expressed cautious optimism, stating that while the market decline continues, significant launches like the iPhone 15 series and Samsung’s fifth-generation foldable devices have softened the blow. Although a return to growth is not expected in the near future, the fourth quarter of the year shows promise for a strong finish. However, economic conditions remain challenging, leading consumers to hold onto their devices for longer periods. As a result, the smartphone market in Europe is expected to remain subdued for the foreseeable future.

    Uncertain Future for European Smartphone Market

    The future growth prospects for the European smartphone market appear uncertain at this time. The ongoing economic and geopolitical challenges, coupled with the prolonged device usage by consumers, present obstacles for a significant rebound in the near future.

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