Global smartphone shipments in 2022 will drop to 1,226.7 million units, the lowest since 2013, with Apple capturing 85% of operating profit in the smartphone market
Market Monitor , a market analysis report released by market research company Counterpoint , has released global smartphone shipment data for the fourth quarter (October to December) of 2022. According to this, global smartphone shipments decreased by 18% from the same period last year to 303.9 million units.
2022 Global Smartphone Shipments Lowest Since 2013; Apple Regained No. 1 Rank with Highest-Ever Operating Profit Share of 85%
According to Market Monitor, the global smartphone market continues to be under pressure in the fourth quarter of 2022, with total shipments dropping 18% year-on-year to 303.9 million units. This is the lowest number of smartphones shipped in the fourth quarter since 2013. This brings smartphone shipments for the full year of 2022 to 1.2267 billion units, also the lowest number since 2013.
Below is a graph summarizing quarterly smartphone shipments from the fourth quarter of 2021 onwards. In the fourth quarter of 2022, the shipments of the top five smartphone shipments were down 14% for Apple, 16% for Samsung, 26% for Xiaomi, 13% for OPPO, and 20% for Vivo, compared to the same period last year. Others decreased by 21%, and the number of shipments is decreasing across the board.
Harmeet Singh Walia, Senior Analyst at Counterpoint, said, 'The smartphone market in the fourth quarter of 2022 will drop due to the cost of living crisis, labor market shortages and declining consumer purchasing power. It has decreased significantly,' he said.
As shipments of smartphones decline, sales and operating income in the global smartphone market are also declining. An increase in high-end smartphones from major OEMs has pushed the average selling price (ASP) of smartphones up 5% year-on-year in 2022 as a whole, but sales have fallen 9% to $409 billion. billion yen). It's the lowest annual sales for the smartphone market since 2017.
Below is a graph summarizing Apple's shipment share (Shipment Share), sales share (Revenue Share), and operating profit share (Operating Profit Share) in the smartphone market. As of 2022, Apple's share of shipments is 18%, its share of sales is 48%, and its share of operating profit is 85%.
Commenting on Apple's breakthrough in the smartphone market, Jeff Fieldhack, research director at Counterpoint, said, 'Apple's iPhone Pro series continues to perform well and is located in Zhengzhou, Henan Province, China, where the majority of the Pro series is produced. If the factory had not been temporarily closed due to the new coronavirus infection (COVID-19), the share of iPhone shipments could have been even higher.'
Regarding the growing demand for high-end terminals in the smartphone market, Tarun Pathak, research director at Counterpoint, said, ``Samsung expects smartphone shipments to decline by 5% year-on-year in 2022 and operating profit to decline by 1% year-on-year. Despite this, it was the only company in the top five (excluding Apple) to see a 1% year-on-year revenue increase.Samsung's flagship smartphone performed better than market expectations.Nevertheless, the overall smartphone market remained strong. We saw a smaller decline in earnings than in 2020, and our operating profit share increased slightly to 12% in 2022.'
In addition, Chinese smartphone makers have faced global economic recession and geopolitical difficulties across the board, Counterpoint said. Chinese smartphone makers have struggled with lockdowns due to the new coronavirus pandemic in the country, resulting in smartphone shipments from manufacturers such as Xiaomi, OPPO and Vivo dropping by more than 20%. Counterpoint points out that although Chinese manufacturers have also released high-end terminals, they have not gained a large share in the high-end terminal market compared to manufacturers such as Apple and Samsung.