Samsung, Apple lead the global smartphone market despite 8% YoY decline in sales

The global smartphone market is facing significant challenges. This is evident in the recently announced 8 per cent year-on-year (YoY) decline in sales volumes for the third quarter of 2023. This marks the ninth consecutive quarter of slowed growth since the pandemic.

As per the report from Counterpoint, the 8% YoY decline in global smartphone sales volumes for Q3 2023 reflects the prolonged impact of the COVID-19 pandemic and the effects of global conflicts such as the Russia-Ukraine war on consumer demand. Slower-than-expected recovery has hindered the market’s growth, resulting in the ninth consecutive quarter of decline.

However, there’s a glimmer of hope with a 2 per cent QoQ growth, especially with the positive performance in September. This suggests that the industry might be on the path to recovery.

Despite a 13 per cent YoY decline in sales volume, Samsung continues its hold and leadership in the global smartphone market, capturing a fifth (20%) of the total sales in Q3. This underscores its brand strength and product diversification. The success of Flip 5 in outselling its counterparts and the marketability of Samsung’s A-series models in mid-price bands demonstrate the company’s ability to cater to a broad range of consumers.

Apple secured the second position with a 16% market share despite the limited availability of the iPhone 15 series. Despite this constraint, the iPhone 15 series has been well-received. Apple’s brand loyalty and appeal continue to drive sales, showcasing the brand’s ability to maintain its market presence even in challenging circumstances. The iPhone maker, however, witnessed a 9% YoY decline in sales volume, per the report.

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Other brands witness sales decline

HONOR, Huawei, and Transsion Group were the only brands to gain market share and record YoY growth in Q3. Huawei’s growth was driven by the launch of the Mate 60 series in China, while HONOR’s overseas performance was a major contributing factor. Transsion Group’s expansion efforts, coupled with a recovering Middle East and Africa (MEA) market, highlight their ability to seize opportunities in specific regions.

Xiaomi, OPPO, and vivo have encountered challenges, all recording YoY declines. This underscores the competitive nature of the smartphone market. While these companies are striving to strengthen their positions in key markets like China and India, they are also adjusting their overseas expansion strategies, aligning with evolving consumer preferences and market conditions.

Middle East and Africa see smartphone market rebound

Regional dynamics are evident in the smartphone market. The Middle East and Africa (MEA) region was the sole area to record YoY growth in Q3. This was mainly due to improved macroeconomic indicators which include the 5G broadband infrastructure drive of these economies.

In contrast, most developed markets, including North America, Western Europe, and South Korea, have faced steep declines. However, a rebound is anticipated in Q4, primarily due to the delayed effect of the iPhone launch.

The growth of brands outside the top five and the recovery of emerging markets before the global market indicate shifting dynamics and opportunities in the global smartphone market. It also emphasizes the market’s adaptability to changing consumer preferences and highlights the potential for emerging players to reshape the industry’s landscape.

Read also: Samsung leads smartphone market as iPhone 14 helps Apple maintain second spot

Expectations and projections

Expectations are that following a strong September, momentum is expected to continue until the end of the year. This momentum will be driven by factors like the full impact of the iPhone 15 series, festive seasons in India, sales events in China, and end-of-year promotions. Q4 2023 is expected to halt the series of YoY declines, marking a potential turning point for the industry.

Despite these expectations, long-term projections signify a further decline for the full year of 2023, reaching its lowest level in a decade. This decline is primarily attributed to shifting device replacement patterns, especially in developed markets. This trend underscores the challenges of maintaining consumer interest in an era of smartphone technology.

If the smartphone market is to record a strong Q4, it would then mean that the expectations for factors mentioned above to contribute to its growth far outweigh the current demand driven by global tensions and the prolonged impact of the Covid-19 pandemic on economies.