The global smartphone market experienced an 11% year-on-year decline in the second quarter of 2023, signaling a challenging period for industry leaders Samsung and Apple. Both companies had to reduce their sell-in during the same quarter due to gloomy demand. Despite the overall decline, Samsung maintained its leading position with a 21% market share, followed by Apple with a 17% market share.
However, according to Canalys, there are signs of improvement outside the top two market players. Most smartphone vendors have managed to stabilize their inventory levels and are witnessing a return to healthier conditions as macroeconomic factors stabilize. Xiaomi secured the third position with a 13% market share, benefitting from the recovery of supply for its newly launched Redmi series. Oppo, including OnePlus, secured the fourth spot with a 10% market share, driven by a strong performance in the core markets of Asia Pacific. Vivo rounded up the top five with an 8% market share, propelled by successful launches in the new Y-series.
The smartphone market is displaying early signals of recovery after six consecutive quarters of decline since 2022. Vendors have prioritized reducing inventory of older models to make way for new launches, which has contributed to the clearing of smartphone inventory. In certain key markets, vendors have increased investments in the channel through incentives and targeted marketing campaigns to stimulate consumer demand for new releases. For example, Oppo, vivo, Transsion, and Xiaomi have focused on the sub-$200 price band, employing stronger sales incentives and retail strategies to expand their market share.
The smartphone market’s decline in Q2’23 highlights the challenges faced by industry leaders Samsung and Apple, as well as the varying degrees of recovery observed among different vendors. As the market shows signs of stabilization and preparation for future growth, smartphone companies must remain agile and responsive to market conditions to effectively navigate the evolving landscape.
