14 DAY TRIAL // 2022 was supposed to be the year when everything would come back to normal, but as we learned the hard way, this wasn’t at all the case.
The planet continued to struggle not only with the health crisis but also with new challenges, including geopolitical tensions in Europe, rising inflation, a very rough semiconductor crisis, and the skyrocketing prices of, well, everything.
In the phone market industry, pretty much every single company out there ended up feeling the impact of this difficult market in one way or another.
And recent research conducted by IDC shows precisely just how awful 2022 ended up becoming for phone makers.
Samsung continued to be the leading brand across the world with total sales of 260.9 million units. While this helped the company secure a market share of 21.6 percent (up from 20 percent in 2021), Samsung’s sales actually went down from 271.1 million units. The fourth quarter of the year was the one that generated a massive drop, as Samsung’s sales went down from 69 million units in Q4 2021 to 58.2 million units in Q4 2022.
Apple was the runner-up in 2022 after selling 226.4 million units. The Cupertino-based tech giant recorded a decline as well despite a market share increase to 18.8 percent. In 2022, it sold 235.8 million units and controlled a market share of 17.3 percent. The fourth quarter of the year was a nightmare for Apple too, as its sales went down from 85 million units to 72.3 million units.
Xiaomi was one of the companies hit the hardest in 2022. The company sold just 153.1 million units, down from 191 million units the previous year. Its market share also fell from 14 percent to 12.7 percent.
IDC says the demand for new phones is slowing down, especially as customers tend to keep their devices much longer. This isn’t necessarily a surprise, not only because of the skyrocketing prices but also because the entire world witnessed a major upgrade cycle in 2022 when the health crisis emerged. Everybody bought new devices to remain productive at home, and phones too recorded a boom.
The analysis estimates that 2023 is going to be a challenging year, especially from an inventory perspective.
“We continue to witness consumer demand dwindle as refresh rates climb past 40 months in most major markets,” said Anthony Scarsella, research director with IDC's Worldwide Quarterly Mobile Phone Tracker.
“With 2022 declining more than 11% for the year, 2023 is set up to be a year of caution as vendors will rethink their portfolio of devices while channels will think twice before taking on excess inventory. However, on a positive note, consumers may find even more generous trade-in offers and promotions continuing well into 2023 as the market will think of new methods to drive upgrades and sell more devices, specifically high-end models.”
Samsung is the first company that will take the wraps off a high-end device this year. The Galaxy S23 series is projected to see daylight next week, with the sales then likely to kick off by the end of February. New foldables will also be announced in the summer, as per the company’s typical approach.
In the meantime, Apple will continue to bet big on the iPhone 14, especially as the company has finally resolved the inventory problems hitting the Pro models. Both the iPhone 14 Pro and iPhone 14 Pro Max are spearheading sales of the new series, and they continue to be in hot demand across the world.
The next-generation iPhone lineup is scheduled to be announced in September, according to Apple’s typical release calendar.