Apple and Samsung, two of the tech industry’s giants, experienced a decline in their market share as global smartphone sales witnessed an 8% drop from the previous year, marking the lowest Q3 levels in the past decade. This downturn is attributed to a sluggish economic recovery impacting consumer demand. However, there’s a silver lining as the continuous trend of year-over-year sales decline is anticipated to end in Q4, largely due to the sales of the iPhone 15.
- Global smartphone sales decreased by 8% in Q3 compared to the previous year.
- Apple and Samsung both lost market share to rival brands.
- Sales are expected to rebound in Q4, with the iPhone 15 playing a significant role.
- Brands outside the top five experienced an increase in market share in Q3.
- Despite the anticipated Q4 recovery, 2023 might witness the lowest annual sales in a decade.
The global smartphone market’s dynamics are shifting, with brands outside the top five, including Chinese manufacturers like Honor, Huawei, and Transsion Group, gaining market share and witnessing a rise in their year-over-year third-quarter sales. This shift indicates the evolving dynamics and opportunities within the global smartphone market.
Samsung, the global market leader, saw its market share dip to 20% in Q3 from 21% the previous year, with sales dropping by 13%. Apple’s market share also experienced a 1% decline, settling at 16% as its sales went down by 9%. The top five global brands, which also comprise Chinese smartphone producers Xiaomi, Oppo, and Vivo, collectively accounted for 64% of the global smartphone market in Q3 2023. This is a decrease from approximately 68% in 2022 and 2021.
These Chinese companies faced even more significant sales declines than Samsung and Apple. They have been focusing on solidifying their foothold in crucial markets like China and India while simultaneously slowing down their expansion efforts in overseas markets.
The Road Ahead:
Despite the challenges faced in Q3, there’s a glimmer of hope for the smartphone industry. Counterpoint Research predicts a halt in the declining trend in Q4, with sales expected to benefit from the iPhone 15’s full impact, the festive season in India, the 11.11 Singles’ Day holiday in China, and Christmas and end-of-year promotions. The research firm also highlighted a sequential increase in sales from Q2 to Q3 and a promising performance in September, even with the limited availability of the new iPhones.
However, it’s essential to note that even with the anticipated Q4 sales boost, the overall annual sales for 2023 might reach their lowest point in a decade. This is attributed to changing replacement patterns in developing markets.
The global smartphone market experienced a significant shift in Q3 2023, with giants like Apple and Samsung losing market share as overall sales dipped by 8%. While the decline is attributed to a slow economic recovery and changing consumer demand, there’s optimism for Q4, primarily due to the iPhone 15’s impact and various global festivities. However, the industry needs to brace itself as 2023 might witness the lowest annual sales in the past ten years.