According to a report by Canalys, a global technology market analyst firm, global shipments for smartphones declined by 9 percent in the second quarter of 2022. The report stated that smartphone manufacturers suffered a decline in sales in the second quarter as a result of rising inflation.
It is pertinent to know that in the first quarter of this year, global shipments of smartphones declined by 11 percent. With a consecutive decline in the second quarter coupled with rising inflation, there might be a decline in smartphone shipments throughout the year.
In the report, Canalys’ research analyst Runar Bjørhovde said that “Vendors were forced to review their tactics in Q2 as the outlook for the smartphone market became more cautious. Economic headwinds, sluggish demand, and inventory pileup have resulted in vendors rapidly reassessing their portfolio strategies for the rest of 2022. The oversupplied mid-range is an exposed segment for vendors to focus on adjusting new launches, as budget-constrained consumers shift their device purchases toward the lower end.”
Toby Zhu, another research analyst at Canalys also added in the report that “Falling demand is causing great concern for the entire smartphone supply chain.While component supplies and cost pressures are easing, a few concerns remain within logistics and production, such as some emerging markets’ tightening import laws and customs procedures delaying shipments. In the near term, vendors will look to accelerate sell-through using promotions and offers ahead of new launches during the holiday season to alleviate the channel’s liquidity pressure. But in contrast to last year’s pent-up demand, consumers’ disposable income has been affected by soaring inflation this year. Deep collaboration with channels to monitor the state of inventory and supply will be vital for vendors to identify short-term opportunities while maintaining healthy channel partnerships in the long run.”
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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