Canalys released its preliminary report on the global smartphone market during the first quarter of the year. According to the raw data, shipments in the first quarter of 2023 were down 12% annually, declining for the fifth consecutive quarter. Samsung retook the top spot from Apple due to waning 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 sector. Yes, macroeconomic conditions have improved slightly and companies have invested more in promotions and other marketing activities. However, consumer demand remained weak, particularly in the low-end segment due to high inflation.
| Agency | Market share Q1 2022 | Market share Q1 2023 |
| SAMSUNG | 24% | 22% |
| Apple | 18% | 21% |
| Xiaomi | 13% | 11% |
| oppo | 9% | 10% |
| I live | 8% | 8% |
| Others | 28% | 28% |
Continuing weak demand has caused producers to cut production volumes as they try to clear existing inventories. This has had a negative impact on the component supply chain in the long run.
However, the difficult period has made smartphone suppliers more active in production planning and order optimization. As the first signs of recovery are expected in the second quarter of 2023, we should see most of the existing inventory depleted and then hopefully shipments will start to recover.
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