The smartphone market has been declining for the past few quarters, which is not surprising given the current state of the global economy. Even though there are indicators of recovery in the future, a pair of reports from the analytics firms Counterpoint and Canalys indicate that the trend will continue.
The reports indicate that consumers continue to seek out less expensive options, either through the resale market or from companies offering discounts on older models to clear out their inventory.
According to a report by the analytics firm Counterpoint, the smartphone market has declined for the eighth consecutive quarter, with an 8% year-over-year decline.
The report by Canalys indicates that the decline for Q2 2023 was 11%, with six consecutive quarters of negative growth.
Samsung dominated the competition due to the popularity of its Galaxy A series. According to Counterpoint, although Apple ranked second, the iPhone manufacturer had the highest market share ever in the second quarter.
Xiaomi, Oppo, and Vivo, all of China, held third, fourth, and fifth positions, respectively. According to both Canalys and Counterpoint reports, these phone manufacturers held nearly identical market proportions.
Counterpoint also reported that the premium phone market, which includes devices with a wholesale price of $600 or more, exhibited significant expansion. In terms of dispatch, premium phones captured more than 20% of the market for the first time.
This coincides with a prosperous quarter for Apple, as the majority of its devices are priced at or above $600.
India is on course to become the fifth largest contributor to global iPhone sales, according to Counterpoint, which reported a 50% year-over-year growth for the company in India.
While the market for smartphones as a whole continues to decline, a report published earlier this year revealed that the market for refurbished phones increased by 16% annually.
This indicates that consumers are more likely to purchase a used device at a discounted price than a brand-new device.
Both reports use a great deal of jargon to indicate a recovery, but the crux of the matter is that manufacturers are attempting to liquidate their old device inventory through a variety of discounts and sales schemes. This could pave the way for the demand of newer models and stimulate market recovery.
According to Canalys, phone manufacturers have increased their marketing efforts for their impending product launches. In addition, the report indicated that companies such as OPPO, Vivo, Transsion, and Xiaomi are promoting their sub-$200 models through retail channels, which could be crucial for growth in countries such as India.
The analysts did not provide a timeline for when the market will recover. However, they indicated that smartphone manufacturers are purchasing components in bulk to combat price increases and inflation.