Counterpoint: Global mobile phone revenue fell 3% in Q3 2022

• Global mobile phone revenue fell only 3% year-on-year, despite a weak market that led to a 12% year-on-year decline in shipments.
• Apple's revenue grew 10% year-on-year, a gain that prevented a sharp drop in global mobile phone revenue.
• As a result, 5G revenue accounted for 80%, a record high.
• As China is the largest single market for OPPO* and vivo, revenue has declined significantly year-on-year as China continues to face the COVID-19 pandemic and economic impact.

According to the latest market monitoring research by Counterpoint , in the third quarter of 2022, the global smartphone market revenue fell 3% year-on-year to just over $100 billion (about RMB 700 billion). At the same time, shipments in the entire mobile phone market fell 12% year-on-year in this quarter. As the high-end mobile phone market has greater resilience in the face of economic fluctuations, the average selling price increased by 10% year-on-year. Shipments of 5G mobile phones hit a record high, accounting for 46% of total shipments, and the price of 5G mobile phones is about five times that of non-5G mobile phones, which also promoted the growth of average selling prices and revenue.

Speaking about the impact of 5G on average selling price growth, senior analyst Harmeet Singh Walia said: "5G mobile phone revenue contribution exceeded US$80 billion (RMB 560 billion), accounting for 80% of global mobile phone revenue, a record high, compared with only 69% in the third quarter of last year. During the same period, the revenue contribution of LTE phones fell 10% to US$19 billion (RMB 133 billion). Apple led the transition from 4G to 5G. Apple alone accounted for more than half of all 5G revenue as more than 95% of its phones support 5G. In the third quarter of 2022, Apple's revenue increased by 10% year-on-year, and the average selling price increased by 7% year-on-year, contributing to the overall increase in the average selling price of global mobile phones. This is partly due to the launch of the iPhone 14 series and Pro models, especially compared with the previous generation Pro models."

Samsung , the second largest mobile phone OEM by revenue, saw its shipments of its high-end Flip and Fold series nearly double over the same period, and its 5G smartphone revenue increased 27% year-on-year, but its average selling price increased by only 2% year-on-year in the third quarter of 2022 as Samsung shifted its business focus from the more successful S22 series to its upcoming foldable screen series. This also led to a 4% year-on-year decline in Samsung's revenue in the third quarter of 2022.

Xiaomi 's mobile phone revenue grew 4% year-over-year, with the majority coming from low- and mid-priced phones. The share of shipments of phones priced above $300 (RMB 2,100) fell by nearly 1.5%. However, there was a significant shift from the sub-$200 (RMB 1,400) price range to the $200-$299 (RMB 1,400-RMB 2,100) price range. As a result, Xiaomi's average selling price grew 14% year-over-year to $205 (RMB 1,435).

On the other hand, OPPO* 's ASP and revenue fell 5% and 27% year-on-year, respectively. The main reason for the decline in revenue was OPPO's shipment decline in the COVID-19-affected Chinese market, which accounted for more than 40% of its total shipments in the third quarter of 2022. Considering that China accounts for more than half of vivo's total shipments, its revenue fell 43% year-on-year despite a 4% quarter-on-quarter increase.