Global smartphone sales decline to lowest in decade

Sales of smartphones continued to shrink globally in the recently-ended quarter as consumers watched spending, market tracker Counterpoint reported.

Smartphone sales fell 8 percent, marking the ninth consecutive quarter of decline in year-over-year comparisons, according to research by Counterpoint’s Market Pulse service.

The global smartphone market to its lowest third-quarter level in a decade on subdued demand in most developed markets. The decline was “largely due to slower than expected recovery in consumer demand,” the group said in its findings.

Strong sales in September along with buzz around Apple’s new iPhone 15 line-up were signs the current quarter may break the losing trend, according to the market tracker.

“However, the market is expected to decline for the full year of 2023, reaching its lowest level in the decade largely due to a shift in device replacement patterns, particularly in developed markets,” Counterpoint said.

South Korean consumer electronics giant Samsung continued to lead the smartphone market, accounting for a fifth of the sales in the recently-ended quarter.

Samsung posted a 13% drop in sell-through volumes in the period while Apple shipments declined by 8% in the quarter. Apple was listed as second with 16 percent of the market with iPhone 15 models well received so far.

The data showed that the share of the top five brands, which also include Chinese firms Xiaomi, Oppo and Vivo, had fallen to a three-year low.

Among those that gained market share in the quarter is Apple’s Chinese rival, Huawei, which shocked the industry earlier this year with its Mate 60 Pro smartphone using advanced domestically made chip.

Overall shipments rose 2% industry-wide from the second quarter, raising hopes that the market could snap its more than two-year run of year-on-year declines in the last three months of the year.

Counterpoint cited the iPhone 15 lineup that went on sale in September as a factor that could help revive growth in developed markets such as the United States, Europe and Korea.

“Following a strong September, we expect the momentum to continue until the year-end beginning with full impact of iPhone 15 series,” the market research firm said.

It said the festive season in India, the 11.11 sale event in China and end-of-year promotions across regions would also support the market.

Emerging markets have been a bright spot for smartphone sales in an otherwise dour year. In the third quarter, the Middle East and Africa were the only regions to record year-on-year growth.