Market research company Canalys has published its previous report on the global smartphone market in the first quarter of 2023.
The data showed shipments fell 12% year-on-year, marking the fifth consecutive quarter of decline. The decrease in supply was due to a decrease in interest in the iPhone 14 Pro series, which led to Samsung regaining the lead and overtaking Apple. Xiaomi, on the other hand, managed to maintain its position in third place, despite losing a significant number of sales.
According to analyst Sanyam Chaurasia, the decline in supply was expected across the industry. Although macroeconomic conditions improved somewhat, consumer demand remained sluggish, especially in the budget segment due to high inflation. To cope with weak demand, smartphone manufacturers have cut production. They are going to clear existing inventory, which will negatively impact the component supply chain in the long run.
However, this crisis has forced smartphone manufacturers to become more proactive in planning production and optimizing orders. With the first signs of a market recovery expected in Q2 2023, Canalys predicts that much of the existing inventory will be sold off and supply will begin to rise again.