Global smartphone shipments dropped 14.6% year over year in Q1’23, marking the seventh consecutive quarter of decline. According to the International Data Corporation (IDC), the market has been struggling with lukewarm demand, inflation, and macro uncertainties. Inventory levels have improved compared to six months ago, but the industry remains cautious in deploying a conservative approach. While recovery is expected by the end of the year, IDC anticipates that the market will cross into positive territory in Q3’23 and experience healthy double-digit growth by the holiday quarter.
Worldwide Smartphone Shipments in Q1’23:
- Total shipments: 268.6 million units
- YoY decline: 14.6%
- Consecutive quarters of decline: 7
Key Factors:
- Lukewarm demand
- Inflation
- Macro uncertainties
- Elevated inventory levels
- Reduced shipments
- Heavy promotional activities
Regional Performance:
- China:
- Decline: 12%
- Factors: Reopening of the market, consumer prioritization of travel and entertainment
- Developed Markets (USA and Western Europe):
- USA Decline: 11.5%
- Western Europe Decline: 9.4%
- Emerging Markets (APeJC, CEE, and MEA):
- Declines: 17-20%
Market Recovery Expectations:
- Positive territory: Q3’23
- Healthy double-digit growth: Holiday quarter 2023
- Return to growth: Late 2023 into 2024
Industry Perspective:
- Cautious and conservative approach
- Inventory clearing and adjustment
- Increased optimism among mid to low-end market players
