Global smartphone shipments hit lowest point since pandemic start – TechCrunch

More smartphone issues as reports roll in for the second quarter. Per CanalysGlobal shipments fell 9% in the quarter, reversing a brief rebound for the category, whose woes have only been compounded by the pandemic, ensuing shutdowns, supply chain issues and ongoing economic uncertainty.

The 287 million units represent the lowest reading since the second quarter of 2020, when the pandemic began. Interestingly, the confluence of longstanding concerns has led to new problems — namely, oversupply. Falling interest has weighed on companies with older model inventories.

“Supply chain bottlenecks are no longer the most pressing issue as component orders are rapidly being cut and suppliers are beginning to worry about oversupply,” analyst Tony Zhu notes in a press release. “This has led to price reductions for key components, lowering costs for suppliers. Vendors could use the additional savings to improve product competitiveness for new launches in the second half of the year. At the same time, this could make it even more difficult to get rid of old models. The oversupply situation demands more from the planning ability of the providers than the shortage.”

There has been a lot of correction in the industry coupled with a lot of uncertainty. A category that’s effectively trained consumers to anticipate annual spec updates is understandably struggling to move older models, too. Device makers will, of course, move on and use a variety of strategies to deal with the crisis.

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Samsung performed best and retained the top spot with 21% of the market. The company has shifted much of its focus to the budget-friendly A Series — after all, people still need phones, even if inflation and uncertainty have made buying $1,000 flagships largely unsustainable. On the downside, the company is also continuing to push its expensive foldable strategy (so to speak).
Samsung iis expected to be announced next month a pair of new devices. That’s what the company says nearly 10 million foldables shipped in 2021 alone.

Apple, meanwhile, has held onto second place on the continued strength of the iPhone brand. The iPhone 13 defied expectations as the company highlighted a slight increase in sales in last night’s earnings report, defying broader economic headwinds. Perhaps a good indicator of consumer confidence holding up despite macro trends. This was stated in a report earlier this week The Chinese market saw a sharp decline of 14.2% on sale due to lockdowns and reduced consumer confidence.

Global smartphone shipments hit lowest point since pandemic start – TechCrunch Source link Global smartphone shipments hit lowest point since pandemic start – TechCrunch

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