Canalys posted its preliminary report on global smartphone market during the first quarter of the year. According to the rough data, shipments in Q1 2023 declined 12% yearly, falling down for a fifth consecutive quarter. Samsung took back the top spot from Apple due to decreased interest in the iPhone 14 Pro series, while Xiaomi lost a lot of sales, but managed to stay in third.
According to analyst Sanyam Chaurasia, the decline was within expectations throughout the industry. Yes, macroeconomic conditions improved a little, and companies did invest more in promotions and other marketing activities. Still, consumer demand remained sluggish, particularly in the low-end segment due to high inflation.
The continuing weak demand has caused makers to reduce production volumes, as they look to clear existing inventory. This has negatively impacted the component supply chain in the long run.
Still, the rough patch has made smartphone vendors more active in production planning and order optimization. As the first signs of recovery are expected in Q2 2023 we should see most of the existing stock sold through and then hopefully shipments will start to pick up again.