The smartphone market fell 12% in the first quarter
Canalys has published its preliminary report on the global smartphone market during the first quarter of the year. According to approximate data.
Shipments in the first quarter of 2023 were down 12% annually, down for the fifth consecutive quarter. Samsung regained first place from Apple due to a drop in interest in the iPhone 14 Pro series, while Xiaomi lost a lot of sales, but managed to stay in third place.
According to analyst Sanyam Chaurasia, the decline was within expectations across the industry. Yes, macroeconomic conditions have improved a little bit, and companies have invested more in promotions and other marketing activities. However, consumer demand remained sluggish, particularly in the low-cost sector due to high inflation.
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Continued weak demand has caused manufacturers to reduce production volumes, as they look to liquidate existing inventory. This has negatively affected the component supply chain in the long run.
However, the rough patch made smartphone vendors more proactive in planning production and optimizing orders. With the first signs of recovery expected in the second quarter of 2023, we should see most of the existing inventory sold off and then hopefully shipments start to pick up again.