14 DAY TRIAL // New data shared by Canalys reveals that the phone market declined no less than 11 percent in the first quarter of the year, but on the other hand, both Samsung and Apple have managed to increase their market share.
The dropping demand for new smartphones is caused by what Canalys describes as unfavorable economic conditions.
“The global smartphone market was held back by an unsettled business environment in Q1,” said Canalys VP Mobility Nicole Peng.
“Markets saw a spike in COVID-19 cases due to the Omicron variant, though minimal hospitalizations and high vaccination rates helped normalize consumer activity quickly. Vendors face major uncertainty due to the Russia-Ukraine war, China’s rolling lockdowns and the threat of inflation. All this added to traditionally slow seasonal demand. Vendors must equip themselves to respond quickly to emerging opportunities and risks while staying focused on their long-term strategic plans. The good news is that the painful component shortages might improve sooner than expected, which will certainly help relieve cost pressures.”
Samsung now controls 24% of the market
Samsung continues to be the number one phone maker out there, but what’s more important is that it managed to increase its market share from 22 percent in the first quarter of 2021 to 24 percent in Q1 2022.
Apple also jumped 3 percent to reach 18 percent in this quarter, while Xiaomi dropped to 13 percent.
“While the iPhone 13 series continues to capture consumer demand, the new iPhone SE launched in March is becoming an important mid-range volume driver for Apple. At a similar price point to its predecessor, it offers an upgraded chipset and improved battery performance and adds the 5G connectivity that operator channels are demanding,” Canalys Analyst Sanyam Chaurasia explained, adding that Samsung also performed well thanks to its new 2022 mobile device lineup.