Last year, sales of ‘smartphones’ fell below 1,200 million, which meant a decrease of 17% compared to the previous year. Thus, the worst figures of the last decade were recorded
The little of the smart phones It reached its peak in 2016 and has lost steam ever since. Both in terms of sales (the peak was reached six years ago, with 1,473 million devices sold worldwide), and in terms of innovation and public interest. And it is that now there is much less expectation than a few years ago for these devices that have changed the world but that are no longer capable of presenting substantial innovations so often.
However, recently published Canalys data, 2022 was the worst year for smartphones. Worldwide sales fell below 1.2 billion devices. The most striking thing was that in the last quarter of the year, which is traditionally the one with the highest number of sales since it includes the Christmas period and Black Friday, it registered a real disaster compared to 2021: the drop in sales was 17%, while in the year as a whole it moderated to 11%. Such negative figures have not been recorded since 2013, the year in which ‘smartphones’ began to oust old mobiles – some 1,000 million were registered in total.
The factors of the crisis
“Smartphone manufacturers have faced a difficult macroeconomic environment throughout 2022,” said Runar Bjrhovde, an analyst at Canalys Research. The problems with the confinements by covid in china, the war in Ukraine, inflation and rising costs of raw materials and logistics are factors that have reduced sales.
The increasingly high prices of devices, little innovation and the decrease in purchasing power complete the picture. Mid-range and low-end phones, the ones with the highest volume (but lowest margins), were the most affected in the fourth quarter of 2022, although premium models also experienced a decline. The behavior of the market in the fourth quarter of 2022 contrasts with that of the fourth quarter of 2021, in which there was an increase in demand and an attenuation of supply problems.
What will happen in 2023?
For the year that has just begun, there are few prospects for change. Technologies such as 5G, which until a couple of years ago several experts considered important to boost sales, have revealed all their weaknesses. By now, all or almost all phones are 5G, but no one rushes to switch to a 4G mobile just for the sake of having 5G, because the services are still embryonic and the benefits in terms of speed and network quality are not yet. they are significant.
According to Le Xuan Chiew, another Canalys analyst, “providers will approach 2023 cautiously, prioritizing profitability and protecting market share” and “are cutting costs to adapt to the new market reality.” Although the inflationary pressures gradually abate, the effects of interest rate hikes, the economic slowdown and an increasingly tight labor market will limit market potential, negatively affecting saturated markets dominated by the mid-range and high-end, such as Western Europe and North America .
Apple regains top spot
If we do an analysis of the brands -always according to Canalys data-, Apple regained first place among manufacturers in the fourth quarter of 2022 and reached its highest quarterly market share in history, with 25% of sales. , despite production problems at its maxi factory in Zhengzhou (China).
Samsung finished the fourth quarter in second place with a 20% market share. Xiaomi held on to third place despite its share falling to 11% in the fourth quarter, largely due to difficulties in India. The other two Chinese companies, Oppo and Vivo, complete the top 5 manufacturers, with 10% and 8% market share respectively.
The analyst’s opinion
Although the level of sales continues to be very high (more than 1,000 million devices are sold per year), it can be said that the golden age of the smartphones?
Paolo Pescatore, an analyst at PP Foresight and an expert in Technology and Digital, tries to answer: “It is increasingly difficult for smartphone manufacturers to differentiate their devices. They have spent years designing models driven by the insatiable desire of users to be connected with more screens. Bigger, longer lasting batteries and better cameras.Therefore, a special emphasis is now placed on significantly improving existing features, user experience and preparing devices for the future by extending the product life cycle.”
Looking ahead, Pescatore adds: “Consumer electronics manufacturers have a long investment history to try to offer a solution to a problem. Just think of roll-up televisions, whose screens could reach mobile devices. The challenges are immense and require impressive engineering work and years of development. My fear is that many of these technologies, 8K is another example, will be launched too soon, when there is no real demand from the public.” And returning to smartphones, the British analyst of Italian origin adds: “The first incursions in foldable devices have reignited the market and created buzz. But while we may want to have these innovative new designs, they are not must-have features for users.”
In addition, its cost is prohibitive. “Even if users want more functionality, they are unlikely to spend more than necessary. The smartphone is still the Swiss Army knife of the tech world, but the cost of living crisis is having a profound impact on all businesses – no one is immune. to it,” he adds.
This will cause a ripple effect that will affect users’ willingness to buy a new premium phone.
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