IDC: Smartphone Shipments Declined 8.9% in Q1 as Global Demand Softens
April 29, 2022 | Business WireEstimated reading time: 2 minutes
Worldwide smartphone shipments declined 8.9% year over year in the first quarter of 2022 (1Q22), according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker. This marks the third consecutive quarter of decline for the smartphone market as shipments fell to 314.1 million units in the quarter, about 3.5% lower than IDC forecast in February.
"Although some decline was expected in Q1, due to the ongoing supply and logistical challenges and a difficult year-over-year comparison, things seemed to have taken a turn for the worse," said Nabila Popal research director at IDC. "Consumer sentiment across all regions, and especially China, is broadly negative with heavy concerns around inflation and economic instability that have dampened consumer spending. This is now coupled with the rising costs of components and transportation and the recent lockdowns in Shanghai, which are exacerbating an already difficult situation. On top of all this is the Russian invasion of Ukraine, which immediately impacted that region and continues on an unknown trajectory. Given all these uncertainties, most OEMs are adopting a more conservative growth strategy for 2022."
From a regional standpoint the obvious focus has been on Ukraine, Russia, and the rest of Eastern Europe. The Central and Eastern Europe (CEE) region was down close to 20% during the quarter, and the outlook for many of those markets remains uncertain. However, from a volume standpoint CEE only accounts for 6-7% of global shipments and about 5% of market revenue. The biggest draw down on global volumes came from China and other parts of Asia/Pacific, which account for nearly half of all shipments worldwide and declined 12.3% (combined) in 1Q21.
"It goes without saying that the world continues to face numerous challenges, whether it be geopolitical, pandemic related, or macroeconomic," said Ryan Reith, group vice president with IDC's Worldwide Mobile Device Trackers. "Almost everything that’s happened in recent months has been a headwind on the smartphone market, and realistically many other technology segments. Our research tells us Samsung and Apple have navigated the supply chain situation a bit better than their competitors, and as a result we have seen reduced orders from the next set of top OEMs. We remain of the opinion that any diminished demand will not be lost, but rather pushed forward. It's just a matter of when that demand resumes."
Despite the challenging environment, vendor positioning was not altered much during 1Q22. Samsung led the vendor race with the top spot and 23.4% share, its largest share in any given quarter since the first quarter of 2018. Apple came in second with 18.0% share, while Chinese vendors Xiaomi, OPPO, and vivo followed in the next three positions with 12.7%, 8.7%, and 8.1% share respectively.
Suggested Items
Jaltek Forge Partnership to Target New ‘Agritech’ Business
07/26/2024 | JaltekJaltek is thrilled to announce it has signed a new partnership that will give ‘agritech’ innovators seeking contract manufacturing and electronics solutions a single point of contact.
Flex Appoints Michael Hartung as President, Chief Commercial Officer
07/26/2024 | FlexFlex announced the appointment of Michael Hartung as President, Chief Commercial Officer, effective immediately. In his expanded role, Mr. Hartung will continue to report to Flex CEO, Revathi Advaithi and lead both the Agility and Reliability segments, focusing on delivering on the long-term Flex Forward strategy and driving the adoption of the company's end-to-end services and products across targeted markets.
Amphenol Reports Record Q2 2024 Results and Announces Dividend Increase
07/26/2024 | Amphenol CorporationThe Company continues to deploy its financial strength in a variety of ways to increase shareholder value. During the quarter, the Company purchased 3.1 million shares of its common stock for $190 million and paid dividends of $132 million, resulting in total capital returned to shareholders of more than $320 million.
MKS’ Atotech and ESI Participate in Electronics Circuit Asia in Thailand
07/25/2024 | AtotechMKS Instruments announces its participation at the Electronics Circuit Asia 2024 in Thailand, July 24-26, highlighting its leading brands Atotech® and ESI® and related advances in advanced packaging, package substrate, and printed circuit board manufacturing.
NCAB Releases Interim Report, January–June 2024
07/25/2024 | NCABNet sales decreased by 12% to SEK 935.1 million (1,057.5). In USD, net sales decreased 13%. For comparable units, net sales decreased 15% in both SEK and USD.