IDC: Smartphone market collapses like never before

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Similar to the stumbling PC market, all major smartphone manufacturers are currently struggling with sales problems. Market researchers at IDC report the sharpest decline ever for the normally profitable “holiday season” in the fourth quarter. An upward trend is looming on the far horizon.

A drop of 18.3 percent in the fourth quarter of 2022 represents the sharpest decline within a quarter compared to the previous year that market researchers have ever recorded for smartphones. Even the usually helpful Christmas business could not change anything about this fact. All providers are affected by the declines, even Apple could no longer hold back with 14.9 percent fewer iPhones sold, although other manufacturers have recorded even greater losses. For the year as a whole and for all manufacturers, 11.3 percent fewer smartphones were sold than in 2021.

Christmas business cannot save the fourth quarter

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In the fourth quarter of 2022, Apple led the field with 72.3 million devices sold and a market share of 24.1 percent. Samsung and Xiaomi followed in second and third place with 58.2 million units and 19.4 percent market share and 33.2 million smartphones and 11 percent market share, respectively. Oppo secured fourth place with 25.3 million smartphones and 8.4 percent market share, while Vivo, which is also owned by BBK Electronics, landed at 22.9 million units and 7.6 percent market share.

4Q22
Deliveries 4Q22
Market share 4Q21
Deliveries 4Q21
Market share change Apple 72.3 24.1% 85.0 23.1% – 14.9% Samsung 58.2 19.4% 69.0 18.8% – 15.6% Xiaomi 33.2 11.0% 45.0 12.2% – 26.3% Oppo 25.3 8.4% 30.1 8.2% – 15.9% Vivo 22.9 7.6% 28.3 7.7% – 18, 9% Other 88.3 29.4% 110.2 30.0% – 19.8% Total 300.3 100.0% 367.6 100.0% – 18.3% Units in millions

Apple records smallest decline in 2022

In relation to the whole of last year, however, Samsung has restored the well-known order as market leader. 260.9 million smartphones with a market share of 21.6 percent are enough for the leading position despite the decline of 4.1 percent. Apple is led by the IDC with 226.4 million smartphones and 18.8 percent market share. Based on the year as a whole, Apple lost only 4 percent and thus the least of its competitors. Xiaomi, Oppo and Vivo again landed in third, fourth and fifth place and sold a total of 153.1 million, 103.3 million and 99 million smartphones respectively in 2022. With declines of 20 percent and more, these three companies are struggling with significantly worse numbers.

2022
Deliveries 2022
Market share 2021
Deliveries 2021
Market share change Samsung 260.9 21.6% 272.1 20.0% – 4.1% Apple 226.4 18.8% 235.8 17.3% – 4.0% Xiaomi 153.1 12.7% 191.0 14.0% – 19.8% Oppo 103.3 8.6% 133.6 9.8% – 22.7% Vivo 99.0 8.2% 128.3 9.4% – 22, 8% Other 362.7 30.1% 399.1 29.3% – 9.1% Total 1,205.4 100.0% 1,359.8 100.0% – 11.3% Units in millions

Consumers are keeping smartphones longer and longer

The last year saw 1.2 billion smartphones shipped and thus completed a decline of 11.3 percent. IDC justifies the declines with a sharp drop in consumer demand, inflation and economic uncertainties. The bad numbers harbor a strong risk for the increase of 2.8 percent that was actually expected this year, which is now becoming a long way off and, in the best-case scenario, could still become reality with good numbers at the very end of the year.

As the market researchers note, the upgrade cycle for a new smartphone in the most important markets has now increased to over 40 months. Buyers are also careful when buying from retailers so as not to sit on too much inventory.