Global smartphone shipments tanked in 2022
2022 global smartphone shipments were at their lowest level since 2013, according to data from Counterpoint Research.
Global smartphone shipments declined by 18% year-on-year (y-o-y) in Q4 2022, the group said, while smartphone shipments across the whole of 2022 declined by 12% to 1.2 billion, the lowest amount of shipments since 2013.
Thus, global smartphone revenue saw a 9% decline to $409 billion, the lowest since 2017.
However, Apple had a strong year, achieving its highest-ever global shipment numbers, revenue and operating profit share in 2022.
Apple also replaced Samsung as the top smartphone player in Q4 2022, driven by the iPhone 14 series launch.
Q4 global smartphone shipments are listed below:
| Brand | Q4 2021 (millions) | Q4 2022 (millions) | Y-O-Y change |
|---|---|---|---|
| Apple | 81.5 | 70 | -14% |
| Samsung | 58.3 | 69.0 | -16% |
| Xiaomi | 45.0 | 33.2 | -26% |
| Oppo | 33.9 | 29.6 | -13% |
| Vivo | 29.3 | 23.4 | -20% |
| Others | 112.7 | 89.4 | -21% |
Counterpoint’s Harmeet Singh Walia said that the war in Ukraine, inflationary pressures, and economic headwinds kept consumer sentiment weak throughout 2022, with smartphone users reducing the frequency of their purchases.
In Q4 2022, the cost of living crisis, a shortage in the labour market and a decline in purchasing power for consumers led to double-digit declines from the previous year for all of the largest smartphone sellers.
Thus, worldwide smartphone revenue and operating profit declined, but not to the same extent as global shipments. Additional premium phones in the market drove up the overall selling price across all the brands listed.
Despite global smartphone revenue declining to $409 billion across the whole of 2022, Apple saw 1% growth.
Counterpoint’s Research Director Jeff Fieldhack said that “having proficiently managed its production problems, Apple was able to weather a year already marred by economic and geopolitical turmoil better than other major smartphone players.”
The iPhone 14 series did incredibly well and could have done better if Covid-19 disruptions did not cause production delays at its Chinese factory.
However, Apple’s revenue, shipments, revenue and operating profit declined y-o-y during Q4 2022. That being said, it still outperformed the rest of the smartphone market in all three metrics – achieving an 18% shipment share, a 48% revenue share and an operating profit share of 85%.
South African market
Despite South Africans facing a cost of living crisis in the later stages of 2022, premium smartphones showed impressive sales over the last several months.
As reported by ITWeb, Justin Hume, vice-president of mobile experience at Samsung South Africa, said that the company made gains with its premium model selection.
Hume said that the S22 Ultra – the highest-end device in the S22 series – contributed to 50% of the range’s sales.
Samsung is expecting to see growth in 2023, with the launch of the Galaxy S23 series as the company focuses further on its premium category.
Although Samsung remains positive for its premium smartphone ranges in 2023, tough economic conditions may force higher-end customers into the mid-sized smartphone range.
Cellucity director Christopher Henschel said that the company saw exceptional growth in its R4,000 to R8,000 device range and that the value and specifications of mid-tier phones are incredibly important to consumers.
Henschel believes the quality and specifications of the mid-tier devices are now compelling. “With load-shedding, people are more reliant on a quality screen and good battery life to keep them entertained when the lights go out.”
Read: South Africa’s big push to use drones for security and border control