What They Say
Counterpoint Research joined in with sending signals of gloom in the US market when it pointed out that consumer sentiment in the US is the lowest it has been since the financial crisis back in 2008. The firm had a look at the discounts offered by Amazon on Prime Day and said that this suggested high inventories that Amazon is trying to pare down. So far in 2022, smartphone sales at Amazon have been below their 2021 levels.
Android smartphone discounts included some of the steepest price cuts on devices like the Samsung Galaxy S22 series, Samsung Galaxy Z Flip and Fold 3 5G, and Google Pixel 6 and 6 Pro. The Galaxy S22 Ultra was available for up to $420 off and the Galaxy Z Fold 3 5G for up to $700 off. There were also significant discounts of 21-43% on Motorola devices like the Motorola Moto G Pure, Moto G Power 2022 and the Motorola Edge 2021, as well as Tracfone devices. These are the steepest discounts Counterpoint has seen yet in 2022 and that may be a signal that strong promotions are needed to move inventory and attract demand.
The same kind of discounting was seen on TVs Amazon offered its lineup of Fire TVs for 45% off with similar discounts available for other TV brands. Smartwatches and earbuds were also heavily discounted.
Directly following the shopping holiday, Amazon announced that this was its strongest Prime Day ever, with over 300 million items sold and consumer electronics being one of the strongest performing categories.
What We Think
This just adds to the story reported by NPD (71% of TVs Purchased Were Sold on Promotion Through April 2022) (BR)
