Canalys: Global smartphone market to decline 12% in the first quarter of 2023

The global smartphone market declined for the fifth consecutive quarter, falling 12% year-on-year in the first quarter of 2023. Despite improvements in key macro headwinds, the market has yet to recover. Samsung was the only leading vendor to achieve a quarter-on-quarter recovery and struggled back to first place with 22% market share. Meanwhile, Apple narrowed the gap with Samsung in second place with 21% market share, driven by strong demand for its iPhone 14 Pro series. Xiaomi maintained third place with 11% market share, thanks to new product launches at the end of the quarter while inventory adjustments continued. OPPO and vivo strengthened their positions in the Asia-Pacific region and their home markets, accounting for 10% and 8% market shares, respectively.

Canalys analyst Sanyam Chaurasia said: "The decline in the smartphone market in the first quarter of 2023 was within industry expectations. Macroeconomic conditions continue to hinder suppliers' investment and operations in multiple markets. Despite supplier price cuts and aggressive promotions, consumer demand remains sluggish, especially in the low-end market, as high inflation affects consumer confidence and spending. In addition, the continued sluggish end-user demand has triggered a wave of destocking across the supply chain, with channels reducing inventory levels to ensure operations. This has a long-term negative impact on the operational performance of the component supply chain."