Although overall global smartphone shipments declined in Q2 2023, global foldable shipments rose.
In H2 2023, competition in the global foldable product market is set to escalate significantly, driven by the earnest entry of Chinese companies like OPPO and HONOR.
The global foldable market is expected to experience substantial growth in 2024, driven by the introduction of entry-level foldable products.
The global foldable smartphone market increased 10% YoY in Q2 2023 to reach 2.1 million units, according to Counterpoint Research’s most recentglobal foldable smartphone tracker.这种增长形成了鲜明对比的global smartphone market, which showed a 9% decline in shipments during the quarter to reach 268 million units. Due to the prolonged Russia-Ukraine war and the ongoing high global inflation, the smartphone market is expected to grow sideways. Nevertheless, the foldable smartphone sector continues to exhibit robust and sustained growth.
Global and ChinaFoldable Smartphone Shipments, Q1 2022-Q2 2023
可折叠的智能手机景观在中国arket presents a particularly intriguing scenario. During Q2 2023, shipments in the overall Chinese smartphone market slipped 4% YoY to reach 61.9 million units, hurt by the recent economic challenges faced by the country, which led to a reduction in consumer spending. However, the Chinese foldable smartphone market achieved notable success, surging 64% YoY to reach 1.2 million units. China now commands the largest share of the global foldable smartphone market, with a 58.6% share.
FoldableProduct Launch Status in 2023: Comparison of Global and Chinese Foldable Markets
The rapid growth of the Chinese foldable market is primarily attributed to the introduction of foldable products tailored for the Chinese market, coupled with a strong demand for these products among Chinese consumers. In Q2 2023, significant momentum is building for the continued growth of the foldable market. This surge was driven by the introduction of key products such as the Huawei Mate X3, vivo X Fold 2, and vivo X Flip, primarily targeting the Chinese foldable market. Additionally, the global (including China) launch of the Motorola Razr 40 and Razr 40 Ultra, further contributed to this growth trend. In Q2 2023, China saw the launch of five new foldable products tailored for its market, while the global market outside China only saw two foldable product launches during the same period.
Counterpoint Research Senior Analyst Jene Parksaid, “We believe that these frequent product launches (along with the marketing effects that accompany product launches) are changing Chinese consumers’ perception of foldable products. Consequently, Chinese consumers can access a variety of foldable products more easily and frequently than any other market in the world. The continuous release of various foldable products is recognized as one of the important reasons why the Chinese foldable market has continued to grow significantly compared to other markets.”
The global foldable smartphone market will undergo significant changes in H2 2023. Chinese manufacturers are expanding their presence internationally during this period, with notable releases including the HONOR Magic V2, OPPO Find N3 Flip, and the yet-to-be-named OnePlus foldable device. Notably, Samsung’s Galaxy Z Fold 5 and Galaxy Z Flip 5, considered to be some of the top-tier foldable offerings, were launched in August and are expected to capture a substantial market share in H2 2023.
Parkadded, “The global foldable smartphone market is set to see significant growth in the H2 2023, driven by the expansion of Chinese manufacturers. Although Samsung’s market share may dip due to increased competition, we believe that it will be a natural result. However, competition among manufacturers usually has the effect of increasing the size of the market for the product. We believe that the era of the mass foldable phone is expected to start in 2024, mainly led by Samsung and Huawei with their entry-level foldables. Entry-level foldables are expected to be priced around $600 to $700, making them more accessible to consumers.”
Given the absence of most major smartphone OEMs from IFA 2023, HONOR grabbed most of the headlines. And it didn’t disappoint, launching two products that were sure to get people talking: one a masterpiece of engineering, and the other, a masterpiece of thinking outside the box.
HONOR Magic V2
First, we have the Magic V2, HONOR’s latest foldable smartphone that comes only six months after its Magic Vs was launched internationally at MWC 2023. But as we learned from HONOR executives, why wait when such a leap in technology has been achieved? This was quite a poignant statement in an era when most smartphone vendors launch new devices annually, usually without any major upgrades to shout about.
HONOR certainly does have something to shout about with the Magic V2, as the hardware is simply staggering. HONOR has managed to produce a smartphone so thin that it seems to defy physics: at 4.7mm thick when unfolded and 9.9mm thick when folded, the V2 is only slightly thicker than a standard smartphone even when folded. For comparison, the Samsung Galaxy Z Fold5 measures 13.4mm thick when folded, and the Galaxy S23 Ultra is 8.9mm thick. Similarly, at 231g, the HONOR Magic V2 actually weighs less than the iPhone 14 Pro Max or the Samsung Galaxy S23 Ultra, and significantly less than Samsung and Google’s foldables respectively. Overall, it’s the closest to a standard candybar smartphone than any other foldable on the market. And since the dimensions of the front screen are similar to a normal phone, not tall and thin like the Samsung Galaxy Z Fold5, it’s easy to forget it’s a foldable!
But a foldable it is, and the hinge is superbly slick. It occasionally fails to hold itself in an upright position, but it feels solid and leaves no gap at all. The internal screen is beautiful with a 2K resolution, a super-smooth adaptive 120Hz refresh rate, and the crease is hardly noticeable. It feels very premium indeed. The camera is yet to be tested, but the 50MP main, a 50MP ultrawide, and a 20MP 2.5x telephoto lenses, plus AI Falcon Capture, on-paper at least, put it ahead of the Galaxy Z Fold5 and even the Google Pixel Fold. Of course, the latter has Pixel Fold benefits from Google’s image processing technology, but the Magic V2 looks like it will be a very capable snapper.
There are a few downsides. First, the Magic V2 has no IP rating, compared to the Galaxy Z Fold5 IPX8 rating. And secondly is the question of software. Previous HONOR foldables have featured polished software in the way they handle apps and images on the internal screen, but scaling and optimisation are areas for improvement. Time will tell if HONOR has improved with the V2, but I suspect things may still lag the Samsung experience.
However, HONOR has still produced what I think is the best book-type foldable smartphone the industry has seen so far. Sadly, it may not be coming to international markets until next year, which does leave me wondering why HONOR decided to “launch” it now. If the tech is ready (and it’s already available in China), then why not launch it now and get the jump on Samsung? Leaving it until next year gives Samsung a few extra months to try to catch up.
HONOR V Purse
HONOR’s other major announcement at IFA, and the one that attracted most of the headlines was its concept outward folding smartphone, the HONOR V Purse. The device features interchangeable straps and chains that allow it to be carried like a purse or a handbag and uses its outward-facing display to show wallpapers designed to mimic different purse styles.
Little else is known about the device, including whether it will actually be put into production, and to be honest, I don’t think it will be taken very seriously. The personalization possibilities are fun, but I can’t really picture anyone using it with the strap as a “clutch bag” and whacking it on every surface. Also, having such an expensive device clearly on display is asking for trouble.
Even so, it’s a nice example of creative thinking from HONOR, and a welcome attempt to differentiate in a segment where devices are already all looking the same.
Our Q2 2023 Market Monitor report has been published. We release one infographic each quarter to summarize the global smartphone market activities in a single page.
Some quick observations on the smartphone market:
Global smartphone shipments declined 9% YoY in Q2 2023 to reach 268 million units.
Samsung remained the top smartphone player in Q2 2023, while Apple saw a cyclical decline.
Among the top five brands, Apple experienced the smallest YoY shipment decline. Among the top 10 brands, TECNO and Infinix, part of the Transsion Group, saw double-digit YoY shipment growth in the quarter.
In terms of regional performance, only the Middle East and Africa (MEA) exhibited annual shipment growth while North America experienced the highest decline.
The top five brands accounted for almost 80% of the total 5G smartphone shipments in Q2 2023.
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Overview:This insightful report covers key trends in Smart Home Security Cameras, Cellular IoT Connections, AI-driven transformations, revenue dynamics, and emerging technologies. It offers concise, valuable insights for informed decision-making across diverse industries.
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Table of contents:
Global Cellular IoT Connections to Cross 6 Billion in 2030
AI & API Accelerating Digital Transformation Across Verticals
Netgear Q1 2023: Revenue Stutters as Inventory Correction Set to Spill Into Q2
India’s Smart Home Security Camera Shipments Up 48% YoY in Q1 2023
Global Connected Agriculture Node Shipments to Reach 187 Million Units by 2030
Global Connected Construction Machine Shipments Grew 6.7% YoY in 2022
Overview:This comprehensive analysis covers global EV trends, connected car sales, regional market dynamics, key players, emerging technologies, pricing strategies, and market growth. It also provides concise, insightful automotive trends for informed decision-making.
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Table of contents:
China EV Sales Defy Subsidy Cuts, Maintain Strong Growth in Q1 2023
AI Needs to Reside in the Vehicle to Work Well
美国电动汽车销售同比增长79% 2023年一季度得益于税收Credit Subsidy
Global Passenger Electric Vehicle Market Share, Q2 2021 – Q1 2023
Global EV Sales Up 32% YoY in Q1 2023 Driven by Price War
Google Puts Auto Expansion in Top Gear
Huawei ADS 2.0: A Promising New ADAS in Market
Connected Car Sales Grew 12% YoY in 2022 With Volkswagen Group in Lead
Price Cuts Boost Tesla Revenue in Q1, Profit Slumps Compared to 2022
EV Sales in US up 54.5% YoY in 2022; Tesla Market Share at 50.5%
Wearables Q2 2032
Published Date: 24th July 2023
Overview:This is a comprehensive analysis of the latest developments in the wearables industry covering product reviews, market trends, and regional insights. It also includes the Sony WH-CH720N headphones, Apple’s Vision Pro, Meta’s Quest 3, smartwatch markets in China and India, MediaTek’s expansion, AR/VR value chain in China, Apple’s device ecosystem, and wearable innovations at MWC Barcelona 2023.
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Table of contents:
Sony WH-CH720N Review: Good Sound, Effective ANC, Long Battery Life
Vision Pro, iOS 17, New Macs: Here’s Everything Announced at Apple WWDC 2023
Apple Thinking About the Next Decade & Beyond with Vision Pro Announcement
Quest 3 to Help Maintain Meta’s XR Dominance Even as Apple Entry Looms
China’s Q1 2023 Smartwatch Shipments Drop to Lowest in 12 Quarters
India Smartwatch Market’s 121% YoY Growth Restricts Global Decline to 1.5% in Q1 2023
Global Outsourced Manufacturing Smartwatch Shipments Rose 15% YoY in H2 2022
MediaTek Analyst Summit: Focus on Widening Portfolio, Growth in US and Europe
Analysis of the AR/VR Value Chain in China: Is China at the forefront of the industry?
Apple’s Device Ecosystem Multiplies its Brand Strength and Stickiness
Wearable Innovations Stand out at MWC Barcelona, 2023
Semiconductors Q2 2023
Published Date: 24th July 2023
Overview:This is a comprehensive analysis of the industry, encompassing topics like international policies affecting self-reliance plans, regulatory acts in the US, earnings of major players, semiconductor manufacturing in India, emerging technologies in the market, and key events shaping the industry’s future. It provides valuable insights for stakeholders seeking a concise overview of the semiconductor landscape.
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Exhaustive table of contents below:
Will Japan Curbs Hit China Semiconductor Self-reliance Plans?
New Layer-1 Accelerator Cards Set To Boost Open RAN Market – Or Create More Lock-In?
MediaTek Analyst Summit: Focus on Widening Portfolio, Growth in US and Europe
Neil Shah Joins as Vice-Chairman for IC 50 Committee
Arm Platform TCS23 Sets Benchmark to Power Advanced, Holistic Mobile Computing Experiences
BoM Analysis: Samsung Galaxy S23 Ultra Costs $469 to Make
COMPUTEX 2023: AI Solutions, Capabilities in Focus
Currency Fluctuation Limits Global Wafer Fab Equipment Revenue Growth to 9% YoY in 2022
Note: The report comprises of carefully selected aggregated insights published by our analysts during Q2 2023. The data presented herein corresponds to the Q1 2023.
Smartphones Q2 2023
Published Date: 12th July 2023
Overview:This report provides a comprehensive analysis of the global smartphone market, covering various topics and regions gathered throughout Q2. It includes insights into consumer preferences, market trends, and key players. The report offers a broad perspective on the industry, exploring topics such as foldable smartphones, market strategies, display technologies, reviews of smartphone models and much more. This report serves as a valuable resource for industry stakeholders seeking a concise overview of the global smartphone market.
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Exhaustive table of contents below:
Survey: 28% of US Smartphone Users Highly Likely to Opt for a Foldable as Next Purchase
OPPO’s LATAM Strategy is a Success So Far But Challenges Ahead
China Premium Smartphone Market Outlook: Bright Future Ahead
Smartphone Displays Moving Towards ‘Brighter’ Future
OPPO Find X6 Pro Review: A Photographer’s Delight
Refurbished iPhone Volumes Grew 16% YoY Globally in 2022
China Smartphone Sales Fall 5% YoY in Q1 2023; Apple on Top With Highest Sales Share
India Smartphone Market Records Highest Ever Q1 Decline of 19%, 5G Smartphones Contribution at 43%
Global Smartphone Market Declines 14% YoY in Q1 2023; Apple Records Highest-Ever Q1 Share
Survey: 72% of Smartphone Users in India Experience Low-battery Anxiety
US Smartphone Shipments Decline in Q1 2023 Amid High Inflation, Inventory Correction; Apple Share Up
Europe Smartphone Shipments Dropped 23% YoY in Q1 2023; Market at Lowest Levels for Over a Decade
MEA Smartphone Shipments Fall to Lowest Q1 Level Since 2016
LATAM Smartphone Shipments Fall 9.9% YoY in Q1 2023, But Most Leading Brands’ Volume, Share Increase
Apple Shines in a Declining Southeast Asia Smartphone Market
Transsion Updates – Full Year 2022
Festive Season Restricts Decline in Indonesia Smartphone Shipments to 8.1% YoY in Q1 2023
Colombia’s Q1 2023 Smartphone Shipments Hit Three-year Low
Philippines Smartphone Shipments Fall 9% YoY in Q1 2023; realme Leads
Strategy Trumps Sentiment as OEMs Skip Canada for New Feature Launches
Apple Thinking About the Next Decade & Beyond with Vision Pro Announcement
HONOR Bucks Market Trend With Fast Overseas Expansion
Share of OLED Smartphones at Record High
China’s <$150 Smartphone Market Posts Surprising Surge in Q1 2023
Ecuador Smartphone Shipments Up 18% YoY in Q1 2023; Xiaomi Takes Top Spot
Note: The report comprises of carefully selected aggregated insights published by our analysts during Q2 2023. The data presented herein corresponds to the Q1 2023.
Smartphone sales in China fell 4% YoY in Q2 2023. The sales continued to decline in April and May, while the 618 e-commerce festival provided a boost in June.
Among OEMs, vivo reclaimed its leadership position with a 17.7% market share. OPPO (including OnePlus) and Apple were in a tie in Q2, each capturing 17.2%.
Apple, Huawei and realme managed to achieve positive YoY growth. Huawei’s smartphone sales grew 58% YoY driven by a bigger product portfolio.
苹果的销售同比增加7%,因它的位置the premium segment remained unchallenged.
Beijing, New Delhi,Hong Kong, London,San Diego, Buenos Aires, Seoul – July 28, 2023
China’s smartphonesales fell 4% YoY in Q2 2023, reaching the lowest Q2 sales figure since 2014, according to Counterpoint’sMarket Pulse Service.Themacro headwinds, both internal and external, took a toll on Chinese consumer sentiment.
4月和5月,智能手机销售依然疲软,while the 618 e-commerce festival provided a boost in June, resulting in a 25% MoM growth. However, despite the sequential increase in June, the relatively weak performance observed during the618 sales period(June 1 to June 18), with an 8% YoY decline according to Counterpoint’s618 Sales Period Thematic Report, ultimately led to a 6% YoY decline for the full month of June.
Source: Counterpoint Market Pulse Service Notes: OPPO includes OnePlus; Xiaomi includes Redmi; vivo includes iQOO; Figures may not add up to 100% due to rounding
AmongOEMs, Apple, Huawei and realme managed to achieve positive YoY growth.Applemaintained excellent sales performance with 7% YoY growth as its position in the premium segment remained unchallenged. The premium segment has proven to be more resilient during economic headwinds. Even within Apple, the sales share of the more premium Pro models grew from around one-third in Q2 2022 to around half in Q2 2023.
Sales of OEMs excluding Apple dropped 5.5% YoY, with all major Android OEMs except Huawei and realme seeing YoY declines. In terms of market share,vivoreclaimed its leadership position with a 17.7% share driven by a strong performance of the Y35 series, Y8 series and the newly launched S17 series.OPPO(including OnePlus) andApplewere in a tie in Q2, each capturing a 17.2% share.
Notably,OnePlusmanaged to maintain its strong growth momentum from Q1 2023 and achieved YoY growth of 254% in Q2 on the back of channel support from OPPO. On the other hand, OnePlus played an important role in compensating for OPPO’s limited online presence by using its online-centric business model to effectively tap into the segment.
Huawei’s smartphone sales grew 58% YoY in Q2 2023 as the brand managed to resume normal product launches this year. Leveraging its well-established brand image and strong offline footprint, especially in top-tier cities, Huawei witnessed a surge in sales after resolving its product shortages.
HONORandXiaomisaw their market shares drop in Q2 2023 on escalating competition. But HONOR has been catching up in offline presence in China.
With a disappointing performance in H1 2023, we have revised downwards our 2023 forecast for China’s smartphone market – from flat growth to a low single-digit YoY decrease. While we anticipate an improvement in smartphone sales during H2 when compared to H1, a strong rebound does not seem to be on the horizon as challenges that affected the performance in H1 are likely to persist.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
Smartphones with fast charging (>10 watts) accounted for almost 80% ofglobal smartphone salesin Q1 2023, compared to 74% in Q1 2022.
In Q1 2023, the average power for fast-charging smartphones globally reached 34W, compared to 30W in Q1 2022.
Chinese smartphone brands are leading this trend by introducing higher-wattage charging across different price points.
London, San Diego, New Delhi, Beijing, Buenos Aires, Seoul, Hong Kong – July 20, 2023
Sales of fast charging-capable (>10 watts) smartphones accounted for almost 80% of the global smartphone market in Q1 2023, compared to 74% in Q1 2022 and 29% in Q1 2018, according toCounterpoint Research’s Global Quarterly Smartphone Fast Charging Report. The increasing adoption of fast charging-capable smartphones is attributed to growing smartphone usage and continuous advancements in hardware.
Need for fast charging
Nearly half of all smartphone users spend at least five hours a day on their devices.
They use the smartphone to stay connected with friends and family, browse the internet, stream content, and play games.
Besides, advances in smartphone technology, such as the widespread adoption of 5G connectivity and improvements in cameras, displays and processors, have increased the smartphone’s power requirement while enhancing the overall user experience.
These factors have, in turn, led to the demand for smartphones that can be charged faster to ensure uninterrupted usage for at least a full day. As a result, smartphone brands have recognized the importance of fast-charging capabilities and started to embed them in their portfolios.
Fast charging differentiating feature for smartphone brands
Chinese brands are leveraging fast charging as a selling pointto attract consumers. For instance, realme and Xiaomi offer smartphones with power capabilities exceeding 200W. Furthermore, Xiaomi andOPPO recently showcased smartphoneswith an impressive 300W fast charging capability. These brands aim to provide extremely fast charging speeds, enabling users to charge their phones within a few minutes.
Smartphone brands are focusing on making the fast-charging technology affordable. Smartphone brands are embedding fast charging into their lower-priced models as a differentiating factor. While fast charging has already become a standard feature in the >$200 price segment,smartphone brands are now focusingon providing higher-power charging in this segment to achieve the fastest charging speeds. In Q1 2023, the average power for fast-charging smartphones globally reached 34W, compared to 30W in Q1 2022 and 18W in Q1 2018. Smartphones capable of delivering more than 30W can fully charge a completely drained phone in approximately an hour. Charging a smartphone within an hour can be a compelling selling point for smartphone brands.
Chinese smartphone brands are leading this trend by also introducing higher-wattage charging across different price points, especially in the Chinese market where the average power is 50W. On the other hand, brands likeAppleandSamsunghave focused more on prioritizing battery safety and overall performance over pushing for higher-power chargers.
A few years ago, it was common for smartphones to require hours to charge. But now it has become thenorm for recharging to be accomplished in an hour or less, with the fastest achieving a full charge from empty in a few minutes. However, the race to provide faster charging has reached a point of diminishing returns and we expect a shift in emphasis toward other areas of technology in the smartphone in coming years.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
Weak customer demand amid economic headwinds hit smartphone sales during the 618 period this year (June 1-June 18).
vivo took the biggest market share during the sales period while Huawei experienced significant growth.
Online-centric小米最顺序增加this year. It offered bigger discounts on select high-memory products.
Our forecast for China’s smartphone market has been revised downwards to reflect the latest developments.
China’s smartphone salesfell 8% YoY during the 618 sales period in 2023 (June 1-June 18), indicating weak customer demand for smartphones amid economic headwinds, according to Counterpoint’s618 Sales Period Thematic Report. In terms of the competitive landscape for smartphone brands, vivo secured the largest share in the 618 sales period this year, capturing 18.2% of the market. vivo was followed by Apple at 17.9% and HONOR at 15.4%.
Applecontinued to excel in thepremiumsegment, exhibiting an 8% YoY increase without facing any significant competition. To boost iPhone sales during the 618 period, e-commerce websites offered discounts of around 20%.
Huawei saw a substantial 52% YoY growth in sales. The company declared that it had resumed normal product launches this year, unveiling smartphones ranging from the Mate X3 to Enjoy 60 series in H1 2023, covering almost all price segments. The accelerated pace of product launches is expected to contribute to Huawei’s sustained rapid YoY growth in H2 2023.
Note: 2023 618 period starts from June 1st to June 18th; vivo includes iQOO; Xiaomi includes Redmi. Source: Counterpoint Market Pulse Service
The price cuts implemented by OEMs proved effective in helping themarketrecover from the significantly low smartphone sales witnessed in May and April. During the June 1-June 18 period, the total market sales increased by around 30% compared to the previous 18 days.
Online-centric Xiaomi increased most this year in sequential terms. It offered bigger discounts on select high-memory products. Xiaomi also expanded its product portfolio by introducing the K60 16GB+1TB variant at a competitive price of RMB 2,899 (~$400).
The weak sales during the 618 period also fell short ofearlier expectations, despite efforts by most Android OEMs to entice consumers with price cuts. Due to the uncertain economic outlook, consumers were more cautious in their spending, including on durable goods like smartphones.
As a result, we have revised downwards our 2023 forecast for the China smartphone market, from flat growth to a low single-digit YoY decrease.
Our Q1 2023 Market Monitor report has been published. We release one infographic each quarter to summarize the global smartphone market activities in a single page.
Some quick observations on the smartphone market:
The global smartphone market declined by 14% YoY to reach 280.2 million units in Q1 2023.
Samsung surpassed Apple as the leading smartphone player in Q1 2023, driven by the success of its mid-tier A series and the recently launched S23 series.
Among the top five brands, Apple experienced the least YoY shipment decline, resulting in its highest-ever Q1 market share of 21%.
OnePlus emerged as the fastest-growing top-10smartphonebrand globally, with significant contributions to this growth from China and India.
In terms of regional performance, the Middle East and Africa (MEA) market exhibited the only single-digit decline at 8%, although this was based on a relatively small market size.
Europe saw the largest decline for any region, with a 41% decrease, primarily driven by Russia and Central and Eastern Europe.
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The Saudi Arabia smartphone market was among the few to record YoY growth in Q1 2023.
Even as many economies struggled in 2022 amid macroeconomic and geopolitical pressures, Saudi Arabia was bolstered by its highest oil revenues in decades, all-time-low unemployment rates, all-time-high non-oil economic activity and strong private consumption.
在oem厂商,三星和苹果继续采取机汇er half of the total smartphone shipments in Q1 2023, with Samsung taking the #1 spot.
We expect the Saudi Arabia smartphone market to continue its growth momentum in 2023, with annual shipments likely to grow in low single digits.
The Saudi Arabia smartphone market was among the few to record YoY growth in Q1 2023, with shipments growing 26% YoY largely due to strong macroeconomic fundamentals, accelerating digitalization, and growing device financing options. In QoQ terms, the shipments grew 17% as OEMs filled channels for the Easter and Ramadan sales season, towards the end of the quarter.
Growth drivers
As manyglobal economies struggled in 2022amid macroeconomic and geopolitical pressures, Saudi Arabia was among the few to buck the trend. Bolstered by its highest oil revenues in decades as global oil prices soared, Saudi Arabia was the fastest-growing economy in 2022, with all-time-low unemployment rates, all-time-high non-oil economic activity and strong private consumption. PoS (Point of Sale) transactions, e-commerce activity and digital payments have also been on the rise in Saudi Arabia, all pointing to growing digitalization and private consumption. Some of the market momentum at the end of 2022 was carried into Q1 2023, especially after the economic boost provided by the FIFA World Cup in Qatar and the year-end and holiday season of Q4 2022.
Saudi Arabia Smartphone Shipments and 5G Share – Q1 2021 to Q1 2023
While the feature phone to smartphone migration has slowed down in Saudi Arabia, a growing digital economy and an aspirational customer have become key growth drivers. Commercial and private 5G use is also increasing in the country, pushing 5G smartphone sales. 5G technologies are a key part of Saudi Arabia’s digitalization and growth push under the Vision 2030 plan. The country has partnered with major 5G infrastructure players likeHuaweiandEricsson, and5G networksare now available in most major cities, covering around 80% of the country’s population. Saudi Arabia has also been hailed as a 5G pioneer in the region in terms of coverage, speed and consistency. 5G smartphone share remained above half of total smartphone shipments for the second consecutivequarterin Q1 2023 and is likely to grow further in 2023.
Competitive landscape
Saudi Arabia Smartphone Shipments by Top 5 OEMs for Q1 2021, Q1 2022, Q1 2023
在oem厂商,三星和苹果继续采取机汇er half of the total smartphone shipments in Q1 2023, with Samsung taking the #1 spot. Xiaomi and Motorola were distant third, with HONOR rounding out the top five for Q1 2023.
Samsunggrew YoY as its supply normalized in the region. The brand’s 5G models have been leading growth, especially the new affordable 5G M-series and A-series iterations. The Galaxy M53 was the best-selling Android device in the country in Q1. Samsung’s newest flagshipGalaxy S23series was shipped slightly earlier than theS22 series in 2022to meet the pre-order demand triggered by aggressive marketing and promotions in the country, with most channels and offline stores participating.
Apple’ssmartphone shipments nearly doubled YoY led by the popularity of itsiPhone 14 series, especially thePro versions, and as older models became affordable and available. Apple reached its highest-ever Q1 shipment share in Saudi Arabia in 2023. The brand has greatly benefitted from therise of financing options, like the ‘Buy Now, Pay Later’ model, in Saudi Arabia, making its devices accessible to a greater demographic. Besides, a rising mean wage and stable exchange rates increased the average Saudi Arabian consumer’s purchasing power in 2022. iPhones took four of the top five spots in the bestseller list for Q1 2023, with the iPhone 14 Pro coming out on top.
WhileXiaomi’sshipments grew YoY in Q1, it lost share marginally, as Motorola and HONOR gained share driven by new launches. Xiaomi has been able to maintain share largely due to its broad portfolio across price bands, innovative marketing strategies, and a strong presence across both offline and online channels.
Motorolahas been gaining share, led by its offerings in the $150-$249 price band, particularly its G series, which accounted for nearly three-quarters of its total sales in Q1. Motorola has benefitted from improved product availability, especially for new launches, and strong brand pull, especially for middle-income customers looking for upgrades to their lower-segment devices.
HONORwas among the fastest-growing brands in Q1, with its shipments more than doubling YoY. HONOR’s growth is largely due to focused expansion efforts, aggressive launch campaigns and an attractive mid-tier to high-end portfolio. HONOR has also benefitted from utilizing Huawei’s earlier distribution and channel relationships. The HONOR 70 and the X series were the top volume drivers for the OEM in Saudi Arabia for Q1 2023.
Smartphone sales grew YoY across all price bands in Q1 2023 but declined QoQ largely due to seasonality. All price bands except thepremiumband (≥$600) lost share YoY as consumers moved up the price bands. But thepremiumband was the fastest-growing band in Q1, led by Apple and Samsung. Apple captured around 85% of the total premium smartphone sales in Q1. The mid-tier ($100-$249) remained the largest price band in Saudi Arabia, capturing nearly half of the total smartphone sales in Q1, with Samsung and Xiaomi taking the top spots in the price band. Thelower (<$100) segmentgrew YoY but, like other non-premium segments, lost sales share during the same period, as customers continued to buy higher-ASP devices with improving affordability and rising aspirations.
Market outlook
We expect the ASP of smartphones sold in Saudi Arabia to continue to rise in 2023, as wage rates improve, financing options become more accessible, and customers move towards better devices. Currently, Apple and Samsung remain best equipped to capture more share of the aspirational Saudi Arabia smartphone market, but the quest for the #3 spot continues. While Xiaomi remains comfortably in the #3 spot, other Android OEMs have been mounting pressure with bolder promotions and marketing activities and aggressive launch strategies. Motorola, HONOR and Transsion Group brands Infinix and TECNO are likely candidates outside the top three to capture market growth.
Going forward, we expect the Saudi Arabia smartphone market to continue its growth momentum, with annual shipments likely to grow in low single digits in 2023. Increasing 5G use, ramping up of digitalization, greater access to financing options and growing aspirations of customers are expected to drive growth.
Note:
ASP & Priceband Analysis done using Wholesale Prices
Our analystsEthan Qi,Jene Park,Soumen Mandal,Ivan Lam,Shenghao Bai,Archie Zhang,Shaochen WangandAlicia Gongare currently attending the MWC Shanghai 2023 event (June 28-June 30). In the following posts, you will experience the full force of our presence at MWC Shanghai as we provide unique insights from our analysts, unveiling the industry-shaping impact of this remarkable gathering.
Day 1 Highlights:
Consumer Electronics:
Meizu showcases capabilities in ‘device-vehicle integration’
During MWC Shanghai 2023, Meizu showcased a series of products and technologies, including the Flyme Auto intelligent system-enabled EV models, Meizu 20 flagship smartphone series, Titan glass and the EcarX Antares 1000 Pro computing platform. The Meizu 20 series, released in March 2023, sports the Snapdragon 8 Gen 2 SoC, 6.5-inch OLED display, 144Hz refresh rate and UFS4.0 and LPDDR5X memory combination. The Meizu 20 INFINITY Ultimate Edition features a dual-sided suspended Titan glass design, highlighting the emerging trend of flagship models in China competing to adopt more durable glass materials. Meizu also expects its Flyme Auto system to emerge as a guiding beacon for the deep integration of the smartphone and automotive ecosystems.
Huawei showcases Vision Glass
最近推出的智能eyewe华为展示ar product Huawei Vision Glass alongside a range of smartphone models and consumer IoT products. Huawei Vision Glass, unveiled in December 2022, features a Micro OLED display that offers an immersive experience equivalent to a 120-inch virtual giant screen. It boasts 1080p full HD resolution and 480nit brightness and supports a wide color gamut of 90% DCI-P3. In addition, it comes equipped with ultra-thin smart speakers and offers adjustable diopters ranging from 0 to 500 degrees.
ZTE presents nubia Pad 3D, world’s first AI-based naked-eye 3D tablet computer
ZTE highlighted the nubia Pad 3D, which showcases the unique “3D light field” technology for superior naked-eye 3D display quality. It also incorporates AI eye-tracking to provide real-time matching of the most comfortable viewing field. Leveraging the AI neural network deep-learning algorithms, it enables instant conversion of 2D content into 3D. During MWC, ZTE announced collaborations with ecosystem partners such as China Mobile Migu, Jiangxi Kejun, China National Publications Import & Export (Group) Corporation and Datang Xishi to provide a wealth of naked-eye 3D scene applications in areas including film and television, live streaming, gaming, education, healthcare, cultural tourism, online conferences, exhibition display, advertising, and more.
Telecom Operators’ Moves
Establishment of China Mobile Metaverse Industry Alliance
中国移动已经与metaverse ecosystem partners to establish the China Mobile Metaverse Industry Alliance. It unveiled the first group of 24 alliance members at the MWC. The alliance comprises content provider Mango TV, providers of content and software development tools such as Unity, AI technologies leader Iflytek, as well as hardware companies like Huawei, NOLO, HTC VIVE and Xiaomi. They will prioritize cooperation in four key areas – metaverse content creation, XR terminals, key technologies and computational networks.
China Mobile’s 5G Use Case
China Mobile showcased a remarkable 5G use case for automated quality inspection, eliminating the need for wired connections.
China Unicom’s 5G solutions
China Unicom unveiled a groundbreaking 5G-connected solution for traffic lights and cameras.
China Telecom reveals development strategy for 6G
During his keynote speech at MWC, China Telecom chairman revealed that the company was actively pursuing innovative advancements in the architecture of the simplified 6G network. The research primarily focuses on key core technologies, including near-field cellular integration (P-RAN) and air-space integration. China Telecom will maintain a close collaboration with standardization organizations and industry partners to drive the establishment of globally unified 6G international standards.
Innovations from network, software and component providers
Huawei drives 5G ToB advancement with ‘5G Inside’ technology
Huawei not only perseveres in the development of 5G devices but also drives the advancement of 5G ToB. With 5G Inside, Huawei is collaborating with enterprise customers to deliver customized 5G devices that cater to diverse scenarios and applications.
Huawei’s ‘cloud phone’ solution
Huawei offers a cloud phone solution where users can access separate or multiple virtual phones through a dedicated app. This innovative B2B solution is ideal for companies seeking to secure their digital assets and provide virtual phone solutions for their sales staff. Government entities also show interest in this virtual phone solution, while cloud mobile gaming presents another exciting use case.
Huawei’s 5GC Intelligent Traffic Express Solution
Huawei’s 5Gc Intelligent Traffic Express Solution enables the detection and monitoring of user live-streaming activities. In cases where user experience worsens, extra resources are allocated to VVIP users, providing operators with the opportunity to monetize on individuals requiring fast and prioritized connections, such as live-streaming bloggers.
H3C’s Wi-Fi7 Announcements
H3C showcased a compelling use case of Wi-Fi7 enabling remote schooling. The enterprise gateway has the capability to support hundreds of terminals, including tablets and PCs, simultaneously.
China Broadnet’s Naked-eye Display
China Broadnet presents a rejuvenated concept of naked-eye displays.
STMicroelectronics Announcements
STMicroelectronics’ integrated wearable sensing unit, with accelerometers and gyroscopes integrated, can efficiently process signals and directly translate movements into actionable data for smart wearable devices.
AMD’s RFFE Solutions
AMD has introduced an advanced RF front-end solution designed specifically for small cell systems.
AAC Expands its Optical R&D Strength
AAC is significantly enhancing its optical R&D capabilities, particularly in the field of waveguide technologies.
Tongxin Microelectronics Announcements
Tongxin Micro’s NFC chips find wide applications in wearables and smartphones, having already been integrated into various commercial models. Besides, the company serves as a provider of eSIM chips. A solution combining both technologies is currently in the works.
ams OSRAM Mira050 with Wafer Level Optics (WLO) Demo Kit
最小的镜头与前沿NIR-imagi解决方案ng performance – images are sharp from center to edge of image circle. ams OSRAM designed and produced WLO lens mounted on Mira050 EVK sensor board, actively aligned to optimize image quality. Configurable NIR-designs for wavelengths bands around 850nm or 940nm
Kigen and TMC collaborate to drive eSIM innovation
Kigen and Tongxin Microelectronics Co (TMC) have delivered the first-ever simple, global, secure, commercial and GSMA-certified consumer eSIM solution to empower OEM innovation to meet 5G FWA demand for affordable CPE devices. Lead customers are already developing commercial products based on this offering. The companies are now extending it to general availability.
“Global 5G FWA CPE cumulative revenues are expected to reach over $100 billion during 2020-2030. Bringing down the total cost of 5G FWA CPE is integral to 5G broadband adoption, scale and return on investment for all stakeholders in this price-sensitive segment.”Neil Shah, VP of Research, Counterpoint Research
During the launch event, HONOR CEO George Zhao shared thoughts on innovation in future smartphone products:
Inclusion of AI:George thinks that having AI on the device is vital because it would allow users to have multiple-modal interactions and offers better privacy protection in the future digitalized life.
Screen size matters but so does the smartphone weight:Future smartphones should be easier to carry around as they need to be.
Display technology with eye-care features would become popular:In China, more than 30% of smartphone users use their devices for more than five years. Eye-care display technology addresses the consumer’s concerns.
Longer battery life:Customers want devices with longer battery life since they are using them more and more every day.
At the end of his address, Zhao announced that HONOR’s third foldable phone Magic V2 would be launched on July 12 and the product may bring improvements in the abovementioned areas.
Meizu’s announcements
Meizu’s CEO Shen Ziyu made a keynote speech today, describing his vision of interconnection between the automotive and smartphone segments. Meizu is now owned by Chinese auto giant Geely. Ziyu said the synergy between the two segments would be brought by the sharing of computing power, data and hardware. Automobile operating systems should also become accessible to the huge application ecosystem of smartphones. The company is also working on an infotainment system called Flyme Auto, which will offer the same smooth user experience as seen in the Flyme OS for smartphones. Flyme Auto will be installed on the upcoming Lynkco 08 and Volvo Polestar for the global market.
Day 3 Highlights
Lenovo updates
Lenovo showcased its consumer electronics products such as laptops, tablets and smartphones, including its recently launched foldable Motorola Razr 40 Ultra.
Lenovo also had some ToB solutions at its booths, such as AI server, edge computing products, park patrol robot, smart transportation systems and logistics.
Lenovo also supports many of the firms in its ecosystem which have stepped into XR optical solutions, live-streaming supporting platforms, network equipment and smart logistic management system.
For its smart city business, Lenovo showcased its solutions like smart transportation solutions and city emergency management platform.
China Broadnet showcases new 5G calling features
Making calls interesting:用户可以通过使用各种o打电话更有趣f emojis with gestures or voice commands.
Cartoon video call:Users can create their own digital images that can be displayed when making calls without turning on the camera.
Real-time translation:Multilingual real-time translation into text.
Smart customer service:Available online 24 hours to answer questions.
AI/GPT intelligent call:Using AI/GPT to answer questions.
Keynote:Next frontier for AI
In healthcare, AI can help the doctor detect lesions at an early stage.
AI can help cars enable intelligent electrification, networking and information sharing.
Note:Please note that the posts above are still under development and are meant for providing general information only. They should not be considered professional advice. The authors and this website are not liable for any errors or damages resulting from the use of this information.
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