IDC has published its report confirming Canalys’ figures: the smartphone market was particularly hard hit in the first quarter of 2023, with a 14.6% drop compared to 2022. Xiaomi recorded the biggest drop.
It is no secret that the smartphone market has been going through some tough times for over a year now. Firms Canalys and IDC also agree on the overall observation for 2022, with sales down 11.3% and 11% respectively. Unfortunately, the first quarter of 2023 is no exception.
Canalys already presented worrying figures on April 21: according to him, the market shrank by 12% in Q1 compared to last year. IDC, for its part, is even more alarming, posting a 14.6% drop, for 268.6 million units sold. This is the 7th consecutive quarter of decline.
Recovery expected early 2024
This sluggish dynamic is due to weak demand, an inflationary context and macroeconomic uncertainties, we read in the report. ” Although we are optimistic about the recovery towards the end of the year, the next 3 to 6 months will be difficultwarns Nabila Popal, director of research at IDC’s Worldwide Tracker division.
And to continue:Everyone is concerned about when the tide will turn and who will be the first to benefit from the recovery. But the situation is delicate. If you start too early, you will drown in excess stock“, she analyses, before betting on a recovery of new growth by late 2023 or early 2024.
In addition, IDC indicates that mid-range and entry-level smartphones have suffered the most. This is where competition is strongest and where manufacturers’ margins are lowest. The report provides interesting geographic features, with China, the US and Europe down 12%, 11.5% and 9.5% respectively.
Xiaomi, the huge fall
On the manufacturer’s side, all indicators are red, as shown in the table below.
|To notice||Q1 2023 (in millions)||Q1 2023 (market share)||Q1 2022 (in millions)||Q1 2022 (market share)||Evolution 2022-2023|
As we can see, Apple is the one limiting breakage the most and is in a handkerchief with Samsung, 2 points apart.Other way aroundXiaomi is experiencing a disaster scenario with a 23.3% drop, closely followed by a suffering Samsung (-18.9%) and Vivo (-16.2%).
The year starts badly for smartphones: we will now have to turn our backs to the end of the vintage and hope to see a recovery in less than a year.
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