What They Say
Counterpoint Research posted a blog post that highlighted that despite worry about weak demand, the US smartphone market has shown resilience through Q2 2022. Data from the Counterpoint US Monthly Smartphone Channel Share Tracker shows the US smartphone market was down 4% MoM but up 2% YoY in May.
Although higher than last year, the firm sees inventories as ‘under control and within the typical range of 4-6 weeks. Apple has recovered from very low inventory levels at the end of 2021 and the firm is expected to see Q2 2022 sell-in flat on last year. Android inventory is higher than in previous years but ‘manageable’ and Counterpoint said that the high smartphone inventory is mostly driven by the low-end sub-$300 Android devices in prepaid and national retail channels.
As the carriers shut down CDMA networks, they will continue to drive demand for low-cost 4G or entry-level 5G devices. Counterpoint expects around 3% YoY growth in H2 2022 with a strong Q4 holiday season.
What We Think
It’s good to be reporting something positive about a consumer device market! (BR)
