Smartphone sales fell 9% in Q2 2022 due to oversupply. An alarming analysis by Canalys on the Q2 2022 smartphone market was published. After reduced demand due to “economic headwinds and regional uncertainties,” shipments between April and June decreased by 9% yearly.
In Q2, Samsung continued to dominate the market, while Apple reclaimed second place from Xiaomi thanks to robust sales of the iPhone 13, while Chinese manufacturers suffered domestically. Companies had weak demand, according to Runar Bjrhovde, Research Analyst at Canalys, which caused them to reconsider their quarterly strategy.
Smartphone sales fell 9% in Q2 2022 due to oversupply
The producers “reassessed their portfolio” for 2022 due to the skyrocketing inflation and inventory buildup. More than projected, the mid-range market is having difficulties. Sales are currently lagging due to the overcrowding and buyers’ propensity to seek out even more affordable devices.
Toby Zhu, an Analyst at Canalys, continued, “Falling demand is causing considerable anxiety for the entire supply chain.” Cost pressures are lessening, but the manufacturing and logistics issues persist. For instance, the stricter import regulations and customs processes in some emerging markets cause further delays in shipments.
The extreme demand from a year ago has an impact on the 9 percent reduction as well. Following a challenging 2020, there a repressed demand, but today, customers’ spare cash spent on other goods and services rather than electronics.