Global smartphone shipments decline 3.2% year-on-year | Media Analysis | Business | News | Rapid TV News
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As shipments from major OEMs in China recorded double-digit negative growth, second quarter 2022 global smartphone shipments totalled 293.7 million units, a decrease of 3.2% annually and a 4.6% decrease compared with the previous quarter says research from Omdia.
Apple iPhone13 Pro
Although the growth rate from the same period of the previous year was significantly reduced from 13% in Q1 2022, the analyst added shipments decreased to 601.4 million units in the first half as the negative growth trend was maintained for two consecutive quarters.

Looking at the companies driving the market in Q2, the clear winner was Samsung, with shipments of 62.2 million smartphones in the second quarter, followed by Apple, which shipped 48.9 million units. The shipments of these two companies increased by 8.7% and 12.9%, respectively, compared with the previous year.

“The increase in Samsung's shipments is thanks to strong sales of low-end models, such as the Galaxy A13, and its flagship Galaxy S22 series,” said Omdia senior research manager Jusy Hong. “There were also no special issues in production and parts supply this year, unlike the significant decrease in shipments due to the lack of components supply and the lockdown of major production bases during the pandemic in the second quarter of last year.”

Continuing to excel in the premium market, Omdia noted that Apple shipped 48.9 million units. Apple's market share fell from 18.3% in the first quarter to 16.6% in the second quarter this year, but it increased by 2.3 percentage points from 14.3% in the second quarter of last year. Demand for the iPhone 13 series continued to be strong compared with its predecessor, the 12 series. Examining drivers for Apple's growth, the analyst noted that the company’s consumers, who are particularly loyal and high-income customers, were relatively less affected by the economic downturn than mid-range brands. iPhone shipments have continued to grow for the seventh quarter in a row, from the fourth quarter of 2020.

By stark contrast, Omdia’s study revealed the continuing sluggishness of major Chinese OEMs. The year-on-year growth of Xiaomi, Oppo, and Vivo - which ranked third to fifth in shipments - all recorded a decline of more than 20% in the second quarter as in the first quarter. Xiaomi shipped 39.4 million units in the second quarter, notably falling below 40 million. Oppo and Vivo shipments increased slightly quarter-on-quarter but were still down 20.9% and 21.5%, respectively compared to the same period last year. This was said to be indicative of the problems Xiaomi and Oppo have experienced with a shortage of components last year and significantly increased their purchases to secure parts.

Contributing factors to the decline were said to be the ongoing slump in the Chinese domestic smartphone market and increasingly intense competition with Honor, which was experiencing rapid growth in the domestic market, even if, Omdia observed,it was far short of the initially expected quantity. The company’s shipments in the second quarter totalled 15.1 million units – steady since the fourth quarter of last year. As Honor was still focusing on the Chinese domestic market, its shipment increase has resulted in decreased shipments of others, such as Xiaomi, Oppo and Vivo.

Realme took seventh place, with shipments falling by 8% year-on-year in the second quarter, the first decline after a steady increase since the third quarter of 2020, while Motorola, in eighth place, is still enjoying the effect of LG's smartphone withdrawal from the US and Latin America. Tecno was in ninth place with shipments of 8.7 million units and Huawei rounded out the top ten.

Assessing the prospects for the second half of 2022, Hong noted that reducing inventory has become a key theme in the global smartphone market in 2022, not just with smartphone sets, but also key components supply. “In the second half of the year, due to negative factors such as the global economic slowdown, inflation, and a strong dollar, OEMs' shipment targets for this year are being revised downward,” he said. “Most OEMs are rapidly reducing the purchase volume of major parts due to concerns about weak demand in the second half – not just those with high inventories from the first half. Overall, total smartphone shipments this year are expected to be lower than initially expected.”