Worldwide smartphone shipments have experienced a decline for the eighth consecutive quarter, according to a report by the International Data Corporation (IDC). In the second quarter of 2023, a total of 265.3 million units of smartphones were shipped globally, marking a 7.8% drop compared to the same period last year. The report attributes this decline to soft demand, inflation, macroeconomic uncertainties, and excess inventory. However, there is some positive news as the rate of decline is slowing compared to previous quarters.
IDC’s research director, Nabila Popal, mentioned in the report that inventory levels are improving, and there is optimism from key OEMs and supply chains. They expect the market to return to growth by the end of the year and into 2024, providing an opportunity for vendors to gain market share. The report also highlights the entry of Transsion into the top 5 vendors, indicating a potential shift in the vendor rankings.
In terms of regional markets, China saw a year-over-year decline of 2.1% in Q2 2023 after five quarters of significant double-digit contractions. Other regions such as Asia/Pacific (excluding Japan and China), the US, and Europe and the Middle East and Africa (EMEA) also experienced declines in smartphone shipments. However, the report suggests that the second half of the year holds plenty of opportunities for the market, particularly in the foldable smartphone segment.
The report also provides information on the biggest gainers and losers in the market. Samsung and Apple continue to be the top two players, but both experienced a decline in market share compared to the previous year. Xiaomi, Oppo, and Transsion have also seen declines in their market shares. However, there is hope for growth in the foldable market, with an expected 50% growth in 2023 despite the overall decline in the total market.
Source: IDC Worldwide Quarterly Mobile Phone Tracker, July 27, 2023