Apple was the only top phone vendor to increase shipments in Q3 as worldwide smartphone shipments declined 9.7% year over year to 301.9 million units in the third quarter of 2022 (3Q22), according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker. The drop marks the largest-ever third quarter decline and the fifth consecutive quarter of decline for the smartphone market as shipments continue to struggle amidst weakened global demand and economic uncertainties.
“A majority of the decline came from emerging markets where lack of demand, rising costs, and inflation impacted consumers with lesser disposable incomes,” said Nabila Popal, research director with IDC’s Worldwide Tracker team, in a statement. “With high inventory coming into the quarter, shipments and orders by OEMs were further reduced in an attempt to deplete inventory. Although Chinese vendors continue to suffer the most, all vendors were impacted, including Samsung and Apple. While Apple is the only vendor to deliver positive growth this quarter, it still faced challenges as its growth was stunted in many markets, including China, due to the poor macroeconomic situation. Looking to 2023, the market’s expected recovery, which we continue to believe will happen, will be pushed further into the year. Moreover, we now expect a steeper shipment decline for 2022 and a softer recovery in 2023.”
From a regional standpoint, all regions except for Central and Eastern Europe are expected to decline in 3Q22 and for the entire year. Previous expectations for China should remain relatively unchanged at a decline of just over 12% for the quarter. Given the size of China, that has a significant impact on the global results. Developed markets like North America, Western Europe, and Japan will do moderately better, but this still implies low to mid-single-digit declines. Emerging markets in Asia/Pacific, Latin America, the Middle East, and Africa should see a more significant double-digit declines.
“We’re seeing some unique dynamics unfold across the globe regarding smartphone sales,” said Ryan Reith, group vice president with IDC’s Worldwide Mobile and Consumer Device Trackers, in a statement. “Developed markets that often sell more premium devices are faring better than emerging markets where smartphones sell for a fraction of the cost. We believe this is largely supported by the expansion of installment plans offered through telcos, retail channels, and even direct from vendors. Promotional activity around trade-in offers also supports that shift. However, as we look toward next year and beyond, if the global market is going to grow, it will need a strong recovery in emerging markets to make that happen.”
Despite the challenging environment, vendor positioning did not change from last quarter. Samsung held the top spot with a 21.2% share, Apple came in second with a 17.2% share, while Xiaomi came in third with a 13.4% share. vivo and OPPO ended the quarter tied* for the fourth position, each with 8.6% share. Except for Apple, all the top vendors suffered year-on-year declines. However, while Samsung and Xiaomi registered single-digit declines, vivo and OPPO continued to suffer high double-digit decreases.
Notes:
- IDC declares a statistical tie in the worldwide smartphone market when there is a difference of 0.1% or less in the share of revenues or shipments among two or more vendors.
• Data are preliminary and subject to change.
• Company shipments are branded device shipments and exclude OEM sales for all vendors.
• The “Company” represents the current parent company (or holding company) for all brands owned and operated as a subsidiary.
• Figures represent new shipments only and exclude refurbished units.
MacDailyNews Take: Only Apple.
Real iPhones vs. Poor Man’s iPhones. Same as it ever was. — MacDailyNews, April 22, 2022
Apple iPhone customers are the most recession-proof smartphone buyers. — MacDailyNews, September 7, 2022
It’s the peddlers of crappy Android dreck who’ll be the worst affected by rampant inflation and recession, not Apple. – MacDailyNews, September 16, 2022
The same goes for Mac, iPad, Apple Watch, and Apple Services customers in personal computers, tablet computers, smartwatches, and subscriptions, respectively. – MacDailyNews, October 13, 2022
The most inflation- and recession-resistant big tech company is Apple, thanks to its superior customer demographics. – MacDailyNews, October 27, 2022
When your money becomes a greater concern, you want to spend it wisely. In China and everywhere, if it’s not an iPhone, it’s not an iPhone. Further, if it’s not an iPhone Pro, it’s not an iPhone Pro. – MacDailyNews, October 27, 2022
The bottom line: Those who settle for Android devices are not equal to iOS users. The fact is that iOS users are worth significantly more than Android settlers to developers, advertisers, third-party accessory makers (speakers, cases, chargers, cables, etc.), vehicle makers, musicians, TV show producers, movie producers, book authors, carriers, retailers, podcasters… The list goes on and on.
The quality of the customer matters. A lot.
Facile “analyses” that look only at market (unit) share, equating one Android settler to one iOS user, make a fatal error by incorrectly equating users of each platform one-to-one.
When it comes to mobile operating systems, all users are simply not equal. – SteveJack, MacDailyNews, November 15, 2014
Android is pushed to users who are, in general:
a) confused about why they should be choosing an iPhone over an inferior knockoff and therefore might be less prone to understand/explore their devices’ capabilities or trust their devices with credit card info for shopping; and/or
b) enticed with “Buy One Get One Free,” “Buy One, Get Two or More Free,” or similar ($100 Gift Cards with Purchase) offers.
Neither type of customer is the cream of the crop when it comes to successful engagement or coveted demographics; closer to the bottom of the barrel than the top, in fact. Android can be widespread and still demographically inferior precisely because of the way in which and to whom Android devices are marketed. Unending BOGO promos attract a seemingly unending stream of cheapskate freetards just as inane, pointless TV commercials about robots or blasting holes in concrete walls attract meatheads and dullards, not exactly the best demographics unless you’re peddling muscle building powders or grease monkey overalls.
Google made a crucial mistake: They gave away Android to “partners” who pushed and continue to push the product into the hands of the exact opposite type of user that Google needs for Android to truly thrive. Hence, Android is a backwater of second-rate, or worse, app versions that are only downloaded when free or ad-supported – but the Android user is notoriously cheap, so the ads don’t sell for much because they don’t work very well. You’d have guessed that Google would have understood this, but you’d have guessed wrong.
Google built a platform that depends heavily on advertising support, but sold it to the very type of customer who’s the least likely to patronize ads.
iOS users are the ones who buy apps, so developers focus on iOS users. iOS users buy products, so accessory makers focus on iOS users. iOS users have money and the proven will to spend it, so vehicle makers focus on iOS users. Etcetera. Android can have the Hee Haw demographic. Apple doesn’t want it or need it; it’s far more trouble than it’s worth. – MacDailyNews, November 26, 2012
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