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Canalys : Smartphone sales in free fall (-9%) during the second quarter of 2022

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Η Canalys published her report on the purchase of smartphonese according to second quarter of 2022, that shows big drop in sales


Σspecifically, as stated in her report Canalys, Smartphone shipments for the quarter April – June decreased 9% on an annual basis, and the main reason is weaker demand (oversupply), but also the volatile economic environment, with inflation soaring in many countries.

Η Samsung remained the leading Smartphone manufacturer in the 2nd quarter of the year, while the Apple, regained second place from Xiaomi after the strong sales he made with it iPhone 13, while Chinese manufacturers have struggled to make strong sales even in their own country.

According to Runar Bjørhovde, research analyst at Canalys, almost all companies faced a sluggish demand, which led to a review of the strategies to follow in the coming quarters. Rising inflation and large inventory build-ups have resulted in almost all Smartphone manufacturers being forced to “reassess their portfolio» for the rest of 2022.

A typical example of the difficulty faced by companies is the fact that even in the category of devices that belong to the middle price category, there were greater difficulties than expected. Overall the market appears to be overcrowded with devices, but sales are even more subdued than in previous quarters as consumers tend to look for even cheaper devices or extend the use of their old devices and not easily replace them.

This big drop in demand is understandably causing great concern for the entire supply chain, he added Toby Zhu, analyst of Canalys. Cost pressures are easing, but there is still the problem of Logistics and production. For example, stricter import laws and customs procedures in some emerging markets further delay device shipments, slowing companies' penetration of these markets.

In addition to the above, China had a series of lockdowns during the quarter, which disrupted the smartphone market and mainly hit local companies (such as Xiaomi for example), which have a strong presence there.

Η 9% drop in sales, is also the aftermath of the extremely high demand that existed twelve months ago. Today, however, the disposable income of consumers, due to high inflation and the global economic instability that has prevailed due to the huge cost of energy (mainly in Europe) but also the war between Ukraine and Russia, goes to other products and goods, and not to electronics and by extension to Smartphones.


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