Cell phone market plummets and has negative record in sales

Cell phone market plummets and has negative record in sales

The cell phone market is down all over the world. High inflation and high prices draw the attention of consumers who now need to prioritize the already expensive essential day-to-day purchases such as market, gas and water and electricity bills. A new Reviews by the firm IDC reveals that smartphone sales in the last quarter of 2022 were exactly what everyone expected: a complete disaster.

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Preliminary Reviews concludes that sales recorded a decline of 18.3% in the final quarter of 2022 (between October and December) compared to the same period of the previous year, resulting in an all-time negative record, with the largest sales decline of all times in a single quarter.

Poor sales performance contributed to the 11.3% year-over-year drop in 2022 annual sales, representing 1.21 billion devices sold — the lowest annual number since 2013.

“Suppliers are increasingly cautious in their shipping and planning, while realigning their focus on profit,” says IDC Research Director Nabila Popal. “Even Apple, which until now was apparently immune, has taken a hit to its supply chain with unforeseen lockdowns at its main factories in China,” she adds.

Popal also says that the weak performance of the last quarter in the days that rising inflation and concerns about the global scenario continue to hurt consumer spending more than expected, postponing any possible recovery throughout 2023.

Data shows impressive drop in sales

In the quarterly cut, Apple led sales between October and December with 23.1% of the market share, with Samsung in second, with 18.8% of participation, and Xiaomi in third, with 12.2%. Oppo and Vivo are in fourth and fifth place — 8.2% and 7.7%, respectively.

But all saw significant drops in sales. Apple had a decline of 14.9% compared to the same period of the previous year. Samsung achieved a 15.6% drop and Xiaomi was the record holder with an impressive 26.3%. Oppo and Vivo’s drop in sales was 18.9% and 19.8%, respectively.

In an annual cut, Samsung surpasses Apple in sales volume from January to December and the rest of the podium remains intact, with all recording losses: Samsung with a drop of 4.1%, Apple with a loss of 4.0%, Xiaomi with a decline of 19.8% and Oppo and Vivo with declines of 22.7% and 22.8%.

With no expectations of improvement for 2023, future analyzes will show the impact of the weak global economy in each new quarter. It is worth remembering that all major technology companies have already laid off thousands of employees because their billionaire profits were below expectations.

Source: IDC