Who have been the global winners of smartphones in the past 8 years?

Tech 2023-05-17 13:26:09 Source: Network

Source: Electronic Engineering Album, thank youChina has great potential in the high-end smartphone market. Counterpoint believes that by 2023, China's smartphone shipments will recover to over 280 million units

Source: Electronic Engineering Album, thank you

China has great potential in the high-end smartphone market. Counterpoint believes that by 2023, China's smartphone shipments will recover to over 280 million units. The high-end sector is expected to outperform the overall market, with a year-on-year growth of nearly 5%.

Editor: Perception Core Vision

According to the latest research by Counterpoint, the global smartphone market is facing further contraction in the post holiday quarter, with shipments in the first quarter of 2023 decreasing by 14% year-on-year and 7% month on month to 280.2 million units.

From Q2 2021 to Q1 2023, the top five smartphone brands in Q1 2021 were mainly Samsung, Apple, Xiaomi, OPPO, and vivo, which occupied the main market. However, data from multiple research institutions shows that after losing Huawei, the market share of Chinese smartphone brands has been decreasing year by year, with Xiaomi dropping from second place globally in Q2 2021 to third place globally in Q1 2023.

According to Counterpoint data, in Q2 2021, Xiaomi, OPPO, and vivo had market shares of 16%, 10%, and 10% respectively, dropping to 10%, 8%, and 7% in Q1 2023. Samsung ranked first on the global smartphone leaderboard with a market share of 20%, while Apple ranked second with a market share of 19%.

Source Counterpoint

According to Canalys data, global smartphone shipments decreased by 13% to 269.8 million units in the first quarter of 2023. The global ranking of smartphones is the same as that of Counterpoint, but there are differences in market share. Canalys pointed out that in the research, the subsidiary companies POCO and OPPO of Xiaomi will be included in the calculation together.

According to Canalys data, the top five smartphone brands globally are Samsung (22%), Apple (21%), Xiaomi (11%), OPPO (10%), and vivo (8%). Among them, Xiaomi's smartphone market share decreased by the largest 22% year-on-year, followed by Samsung, vivo, and OPPO. Apple maintained a 3% growth despite weak market demand, becoming a major highlight of Apple's performance and revenue in the company. However, Apple's iPad and Mac business revenue has declined.

How to achieve good results in India? Offline channels are key

Canalys' research shows that the Indian smartphone market experienced a 20% year-on-year decline in shipments for the first time in Q1 2023, but they are still optimistic about its long-term prospects.

Apple CEO Tim Cook personally presided over the opening ceremony of India's first Apple store in April this year. It is reported that Apple's first store in India is located in a luxury shopping center in Mumbai, with a total area of 20000 square feet (approximately 1858 square meters).

Apple stated in a statement that the opening of its flagship store in India will be a "significant expansion" of its business in India. Cook stated that as India expands into the middle class, he sees huge growth opportunities. Cook believes that the country is at a "critical point".

With Apple's iPhone users becoming increasingly saturated in the smartphone market, the Indian market has become Apple's next huge strategic focus.

According to Counterpoint data, the top five brands that dominate the Indian smartphone market from Q4 2021 to Q1 2023 were Samsung, vivo, Xiaomi, OPPO, and Realme.

After India's "harsh" crackdown on Chinese mobile phone brands, including Xiaomi, OPPO, vivo, ZTE and other mobile phone brands, they have been investigated multiple times and seized funds and tax issues. Xiaomi's market share has dropped from 21% at the beginning to 16%, and realme has dropped from 17% to 9%.

In a series of competitions, vivo became a leading brand in India's affordable high-end market (INR 30000 - INR 45000, about USD 370-550). OnePlus is the fastest-growing brand in the market, followed by Apple. Apple's offline channels have shown strong growth and continue to lead the high-end and ultra high-end markets.

Source Counterpoint

In the near future, ODM giant Weichuang Zitong will exit the Indian market as soon as 2024 due to the complex business environment in India. And Weichuang's iPhone assembly factory in Karnataka, South India will be acquired by Tata Group of India for 50 billion rupees (approximately 4.195 billion yuan).

Once the acquisition agreement is reached, Tata Group will become the first Indian company to produce iPhones. In 2022, Tata also signed a cooperation agreement with Wistron, with the goal of increasing Wistron's iPhone production in India to five times its current level.

Not only Weichuang, but also Foxconn and Asus are actively expanding their cooperative production capacity in India. In addition, Apple's new offline stores are also key to further enhancing its brand experience and position.

Canalys analyst Sanyam Chaurasia said, "The first quarter of 2023 indicates that brands must balance channel contributions to maintain stable business operations and maintain market share. It has been proven that suppliers with efficient channel management are better able to adapt to market fluctuations.

After the pandemic, suppliers cultivating mainline retail channels have shown stability even during market downturns. The contribution of high priced models is increasing, encouraging suppliers to focus on strengthening their offline channels.

Samsung's fast moving model placement in offline space is very effective. This quarter, it is the new A-series that supports 5G. The new Apple offline store equipped with professional staff will further enhance its brand experience and status. Online big brands mainly drive sales through e-commerce sales, leading to a cyclical surge in sales

Now, is the Chinese smartphone market really not as good as India?

According to CounterpointResearch's market monitoring service, smartphone shipments in Latin America decreased by 9.9% year-on-year in the first quarter of 2023. The European smartphone market saw a 23% year-on-year decrease in shipments in the first quarter of 2023, making it the worst quarter for smartphone shipments in the region since the second quarter of 2012.

The shipment volume of smartphones in the United States decreased by 17% year-on-year in the quarter, due to the correction of high channel inventory by original equipment manufacturers and a decrease in consumer demand due to macroeconomic pressures.

The shipment volume of smartphones in India decreased by 19% year-on-year in the first quarter of 2023 (January March), reaching over 31 million units. This is the largest decline in the first quarter of Indian smartphone market history and the third consecutive quarter of decline.

The sales of smartphones in China decreased by 5% year-on-year in the first quarter of 2023, reaching the lowest first quarter sales figure since 2014.

Canalys research shows that in the first quarter of 2023, the smartphone market in Chinese Mainland will decline by 11% year on year, and the shipment will fall to 67.6 million units, the lowest Q1 since 2013.

More and more people are questioning the potential of China's smartphone market? According to Counterpoint data, the sales revenue of smartphones in China in 2022 decreased by only 11.7% compared to 2016, but the shipment volume decreased by 41.5% during the same period.

Since 2014, the average selling price of smartphones in China has been increasing every year. In 2022, the segmented market with a retail price of nearly 4000 RMB or more, accounting for over 26% of China's total sales, is higher than the 11% when the market shipment volume was the highest in 2016.

China has become the world's second largest high-end smartphone market (with sales of nearly 70 million smartphones worth over 4000 yuan in 2022).

Although the shipment volume of smartphones in China decreased year-on-year in 2022, it was the lowest in nearly a decade. The Chinese market still accounts for 22.6% of global shipments, far higher than India's 12.4%, which ranks second.

Since 2015, Chinese smartphone brands Xiaomi, OPPO, and vivo have been increasing in volume and continuously growing. After reaching its highest market share of 14% in 2018, Huawei's market share has gradually decreased to less than 2% in 2022. After the boom, the market also ushered in more fierce competition, and OEMs paid more attention to product differentiation.

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