According to Omdia, smartphone shipments totaled 265,9 million units in the second quarter of 2023. This represents a decline of 9.5% compared to the previous year and a decrease of 1.2% compared to the previous quarter.
Except for Transsion Holdings and Huawei, all major smartphone OEMs saw declines year-over-year. The three largest OEMs, Apple, Samsung and Xiaomi, all saw their shipments fall more than 10% on year in the second quarter of 2023, Omdia said in its recent report.
In the second quarter of 2023, smartphone shipments declined for the eighth consecutive quarter, year over year, according to Omdia. Recent results were influenced by a number of factors, including the recovery period of smartphone demand during the COVID-19 pandemic between fourth-quarter 2020 and third-quarter 2021. However, it also reflects the diversity of obstacles faced by the industry and the global economy, such as crucial supply issues and diminishing consumer demand in the face of high prices.
Samsung had the most shipments in the second quarter of 2023, reporting 53.3 million shipments. This is a 11.5% dip from the first quarter, following the release of the S23-series, but more worryingly is a 14.3% fall year-on-year, Omdia indicated. This result follows the weak demand for mid/low-end smartphones due to the ongoing economic recession, and sales of Samsung's Galaxy A series significantly declining. Despite this, Samsung smartphones maintained its market share of 20%, and its position as the largest player in the smartphone industry.
Apple sees a big quarter-on-quarter fall following a successful first-quarter for its iPhone 14 series, Omdia said. It recorded 43.2 million shipments, a 24.6% fall from the first quarter and a 11.7% fall from the second quarter of 2022. Consequently, Apple's market share has returned to its normal level for the second quarter of each year, which is 16%. Apple, which previously appeared to be more resistant to the economic downturn, has recently began to feel the pinch.
"Apple has strong sales of premium models such as the iPhone 14 Pro and Pro Max, while the standard and Plus models sluggish sales compared to their predecessors. Normally, from the second quarter, the standard model should drive up the overall quantity, but this year it is different. Demand for Pro and Pro Max is increasing, especially among high-income consumers." said Jusy Hong, senior research manager at Omdia.
Xiaomi's global shipments continue to decline, reaching 33.2 million, a 15.7% year-over-year decline from 39.4 million in the second quarter of 2022. It still holds the third position globally, but faces stiff competition from Oppo and Vivo, both Chinese OEMs, Omdia said.
"The smartphone industry remains in a slump, and we are expecting the market to contract year-on-year until 3Q23. But there is hope for a recovery in the fourth quarter this year," Hong continued. "Apple and Samsung have both faced challenges and have revised their targets down as a result. But these problems will ease come the end of the year and into 2024."
