After a 27-month decline, October marked a turning point for global smartphone sales, increasing by 5% year-on-year. Driven by emerging markets’ recovery, Huawei’s comeback in China, and Apple’s iPhone 15 series launch, this surge indicated a positive shift. Despite challenges like component shortages and prolonged replacement cycles, tech research firms noted a slowdown in the sales decline. Samsung retained its lead in Q3, but Counterpoint Research expects a continued market growth trajectory in the fourth quarter, setting the stage for a gradual recovery in 2023.
The global smartphone market experienced a remarkable turnaround in October after enduring a 27-month decline. Counterpoint Research reported a 5% year-on-year surge in sales, attributing this growth to the revival in emerging markets, Huawei’s resurgence in China, and the impact of Apple’s iPhone 15 series release. Despite industry challenges such as supply chain constraints and longer replacement cycles, recent reports hinted at a slowdown in the declining sales trend. This pivotal moment signifies a positive momentum shift for the smartphone industry, offering hope for recovery amid a challenging landscape.
This positive shift has primarily been driven by a resurgence in emerging markets, particularly noticeable in the Middle East and Africa, alongside Huawei’s resurgence in China and the onset of the festive season in India. Conversely, developed markets, already saturated with smartphones, experienced a slower recovery.
Huawei, with its release of the Mate 60 Pro smartphone in September, experienced remarkable growth in China during the third quarter. This launch captured significant consumer interest owing to its advanced chip technology, contributing substantially to the rebound in smartphone sales.
Moreover, the late September release of Apple’s iPhone 15 series played a pivotal role in boosting global smartphone sales. Counterpoint Research noted that compared to the previous year, the launch was delayed by a week, concentrating the full impact of the new iPhone sales within October.
This resurgence comes amidst challenges faced by the smartphone industry, including component shortages, inventory issues, and prolonged replacement cycles. The uncertain macroeconomic environment has further compounded these problems, leading to a continuous decline in global smartphone sales for more than two years.
However, recent reports from tech research firms, such as Canalys, suggest a slowdown in the decline of global smartphone sales. Third-quarter shipments fell by just 1%, a significant improvement compared to the 10% decline witnessed in the previous quarter. Analysts attribute this to rising demand for new offerings in emerging markets, driving brands and sales channels forward as the holiday season approaches.
Samsung, based in South Korea, maintained its lead in the global smartphone market during the third quarter, holding a 20% market share in total smartphone sales, according to Counterpoint Research. Apple secured the second position with a 16% market share, followed by Chinese brands Xiaomi (12%), Oppo (10%), and Vivo (8%).
Looking ahead, Counterpoint Research anticipates further growth in the global smartphone market in the fourth quarter. Building on the momentum witnessed in October, the firm predicts continued year-on-year growth in the fourth quarter of 2023. This trajectory sets the stage for a gradual recovery in the smartphone market in the forthcoming quarters.
October marked a pivotal moment for the smartphone industry, signaling a reversal from a prolonged sales decline. The resurgence, driven by factors like emerging market recovery and significant smartphone launches, indicates a turning tide. While challenges persist, including supply chain disruptions and economic uncertainties, the slowdown in sales decline suggests a promising outlook. With Samsung leading in Q3 and Counterpoint Research foreseeing continued growth in the fourth quarter, the industry anticipates a gradual recovery trajectory in 2023. This resurgence serves as a beacon of hope, setting the stage for renewed optimism in the global smartphone market.
