Canalys: smartphone market declines 11% in Q2 but is showing signs of recovery

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The smartphone market is in a rough shape after six straight quarters of declining shipments, but Canalys reports that there is light at the end of the tunnel – the analysts have spotted the first signs of recovery.

Global smartphone shipments still fell 11% year on year, a bit better than the 12% decline in Q1, though only a bit. However, inventory is clearing up with vendors trying to push out older models to free up space for new launches. They are also trying to secure a supply of key components to hedge against a sudden rise in their prices.

The Top 5 smartphone makers maintained their positions from the previous quarter, though some declined more than others (e.g. Apple went from 21% in Q1 to 17% in Q2 while Samsung remained relatively stable going from 22% to 21%).

Xiaomi went up 2 percentage points on the back of strong demand for new Redmi models. Similarly, vivo's affordable Y-series is proving to be quite popular. Oppo and OnePlus are doing well in their core markets in the Asia-Pacific region. Note: Canalys combines the numbers for Oppo and OnePlus but tracks vivo separately.

Worldwide smartphone shipments and growth

Canalys Preliminary Smartphone Market Pulse: Q2 2023 Vendor  Q2 2022   market share  Q1 2023 market share Q2 2023   market share  Samsung   21% 22% 21% Apple  17% 21% 17% Xiaomi  14% 11% 13% OPPO  10% 10% 10% vivo  9% 8% 8% Others  29% 28% 31% Preliminary estimates are subject to change on final release  Note: percentages may not add up to 100% due to rounding. OPPO includes OnePlus.  Source: Canalys estimates (sell-in shipments), Smartphone Analysis, July 2023

“Oppo, vivo, Transsion and Xiaomi are growing their market share in the sub-$200 price band through stronger sales incentives and retail aggression,” said Le Xuan Chiew, Analyst at Canalys. They are not alone. Canalys noticed “growing investments in the channel in the form of channel incentives and targeted marketing campaigns to stimulate consumer demand for new launches, driving channel activity”.

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