Why did smartphone sales plummet?

Global smartphone sales in the first quarter of 2022 decreased by 12% as manufacturers had to compete for component supplies.

The market report published by Counterpoint Research shows that global smartphone sales reached 328 million units in the first quarter of 2022, down 7% YoY and 12% QoQ.

Similarly, statistics of research firm Canalys also show an 11% decline of this market in the last quarter compared to the first quarter of 2021.

The reports all show that the global smartphone market is facing many problems, the most prominent of which are the shortage of components, the geopolitical instability in some regions of the world, as well as the shortage of components. as user needs.

The strongest drop belonged to Chinese phone companies, with prominent names such as Xiaomi , Oppo , and Vivo . Sales of these three firms were 39 million, 30.9 million and 28.6 million units, respectively, down about 20% year-on-year, according to Counterpoint.

Global smartphone sales statistics from the first quarter of 2021 to the first quarter of 2022. Photo: Counterpoint

These smartphone companies have done well in the domestic market. However, anti-epidemic policies have caused people's consumption demand to decrease. The Chinese smartphone market peaked before the Lunar New Year, then continued to decline week by week.

"The strict epidemic control policy in the country has led to closures in major cities, affecting the consumer market in the short term," said Canalys expert Toby Zhu.

China is also a source of a large amount of mobile phone components for the world. The disruption in component production and logistics is likely to affect the worldwide smartphone market in the second quarter of this year, Zhu said.

Besides, inflation in some places also affected the demand to buy phones in the low segment. Some firms have to adjust their distribution plans at a macro level. For example, Xiaomi has reduced its smartphone supply to the African and Middle East markets, resulting in a 30% drop in its sales there. Similar results also happened with Transsion, which owns many low-cost phone brands such as Tecno Mobile, Infinix Mobile, Itel mobile.

According to Counterpoint, the need to scramble for components in the context of Covid-19 was still complicated, causing Chinese firms to face difficulties in the last quarter. Oppo was more affected during the Omicron wave, especially in key markets like India. Vivo rose to the top of the domestic market, but saw a global decline.

Meanwhile, Samsung and Apple have more positive business signs, due to some control of supply. Samsung shipped 74 million phones, down 3% year-over-year, while Apple shipped 59 million units and down 1%, according to Counterpoint.

"Samsung seems to have overcome a shortage of components that affected their supply last year. As evidenced by the growth in shipments, even though the high-end product launches later than the previous year," This market analysis company reviews.

Meanwhile, Apple had the best growth, due to the still high demand for the iPhone 13 series and the early launch of the iPhone SE 5G, helping to increase its competitiveness in the mid-range segment.

In addition to the shortage of components, analysts fear the conflict between Russia and Ukraine will pose a new challenge to the recovery of the global phone market. "The impact could be widespread as raw materials fall, prices rise, inflationary pressures and suppliers pull out of Russia," said Counterpoint Research Director Jan Stryjak.