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.
Use the button below to download the high resolution PDF of the infographic:
Expansion, Premiumization Drive Transsion’s Record Quarter
September 4, 2023
Transsion控股报告收入25.03元billion for the first half of 2023, registering a growth of 8.3% YoY. Net profit grew 27.2% YoY primarily due to better product mix (higher proportion of智能手机s随着功能手机相比,前者accounting for 92% of group revenues) and geographical expansion into higher-value markets.
Q2 2023 was the bright spot as revenues were up 30.7% while net profit grew 83.9%. It was the best quarter in Transsion’s history in both revenue and net profit terms. Gross margins also improved to 24.5%, up 2.4% from a year ago.
Much of Transsion’s turnaround in the key financial metrics above can be attributed to a rebound in macroeconomic fundamentals in theAfricanhome market and beyond. Most importantly, inflation rates have come down while food prices have stabilized. Local currencies have also found a stronger footing while several indebted countries across theemergingmarkets have managed to secure restructuring packages with lenders. As Africa’s most entrenched handset company, thanks to its deep channel penetration and marketing heft, Transsion once again benefitted the most from the upturn.
Transsion’s operating cost in H1 2023 increased 5% YoY as the company is ramping up its operations, particularly in newer markets. It has been aggressive with sales and marketing despite the cyclical downturn, with the spending on these activities increasing 23.6% YoY in H1 2023. R&D spending was also up 20.6% YoY to drive premiumization efforts and develop higher-value products to target the new markets. Costs attributed to management grew 6% YoY, whereas cash flow from operating activities turned positive, primarily due to the reduction in the cost of components and materials, as the company is reducing its inventory and moving towards a leaner operating model.
According to Counterpoint Research, Transsion’s smartphone sales volume grew 3% YoY in the first half of 2023 and 17% YoY in Q2 2023 as demand for TECNO智能手机sincreased globally, especially in the company’s newer markets. This helped Transsion’s cash flow, as cash on hand increased 61% YoY to reach an all-time high of RMB 12.79 billion. The number of inventory days dropped further to 61, from 86 a year ago. Therefore, the inventory problem that has been troubling the company for the past year has successfully been managed.
Much of Transsion’s financial successes can be attributed to its continued commitment to entering new markets. In Q2 2023, Africa accounted for 57% of Transsion’s smartphone sales volume, a net drop of 8% from a year ago. Outside Africa, Transsion smartphone sales grew 35% in Q2 2023, most notably in Latin America, EasternEurope,Indiaand Southeast Asia.
The reason for Transsion’s big increase in profitability is found in its ability to upsell to customers. Average selling prices (ASP) for Transsion smartphones rose by 14% YoY for two years in a row. The MEA region anchored the increase as a big expansion into the Middle East was the main factor. In a bid to replicate its success in Africa, Transsion has targeted the low end when entering new markets, but there is potential for the company to grow beyond the current level.
While Transsion continues to enjoy stable gross margins of around 30% in Africa, the company does face a more competitive landscape in the rest of the world, with gross margins of 15%-20%. However, there is room for improvement as the company continues with its premiumization strategy. In a recent interview, Transsion VP Qi Zhang said the company would be launching a flipfoldablein September in another attempt to showcase its technical prowess in the premium segment.
Q3 Revenue Stays Resilient, But Profit Declines Sharply as Costs Balloon
December 13, 2022
Transsion Holdings has reported flat revenue growth for Q3 2022 at 12.9 billion RMB. However, net profit slumped 47.4% YoY due to macroeconomic headwinds, inventory destocking initiatives, competitive pressures, and higher R&D and market expenditure.
Transsion Group Quarterly Revenue and Net Profit Margin
Transsion的第三季度智能手机出货量同比下降了18%,as emerging market demand was hammered by macroeconomic concerns. Inflation rates ticked higher, continuing the pressure on lower-income consumers with high food and energy prices. Local currencies too continued to depreciate against the US dollar.
Despite the big drop in shipment numbers, Transsion’s revenues still achieved positive growth. This was due to a big increase in smartphone selling prices. TECNO and Infinix’s average selling prices (ASPs) rose 26% and 28% YoY respectively. Transsion was able to achieve this due to successful iterations of mainstream devices across TECNO and Infinix, while launching more sophisticated devices that have gathered popularity among aspiring switchers. On the other hand, bringing higher-value products to more mature markets in India and Southeast Asia meant higher contribution from higher-end products to the company’s revenue mix.
Transsion Group Financials Deep Dive – Sales, R&D and Inventory
Three items, in particular, caught our attention in Transsion’s Q3 report:
Inventory:Since the COVID-19 lockdowns, Transsion has moved decidedly away from the feature phone business and into the smartphone business. In parallel, inventory levels have also crept up, reaching an all-time high of 80% of quarterly revenues in Q2 2022, which caused discomfort for the management. In Q3, this level was brought down to a more manageable 57%, which put pressure on margins in the quarter but removed a significant uncertainty for future quarters, as the smartphone market is not expected to rebound until well into 2023.
Sales cost:Other than the cost of goods sold, sales costs represent the biggest cost item in Transsion’s income statement. In a year when Transsion has reported slowing revenue growth, its sales costs have increased significantly as the company paves the way for an aggressive expansion into other regions. Transsion will be hoping the global smartphone market recovers quickly in 2023, but its investment case could come into doubt if smartphone shipments and market share do not pick up meaningfully in its key markets in the next few quarters.
R&D:Transsion is spending heavily on R&D, which is an encouraging sign as the company aspires to move into higher-value smartphone segments and other smart device categories. We expect this trend to continue as the window of opportunity for entry-level devices narrows, considering device costs are expected to creep up, in line with the inflation rate.
Last quarter, we discussed Transsion’s stock options plan for 2022, which is linked to 2024 financial metrics. We expect the company to target 20-25% annual revenue growth rates for both 2023 and 2024. Much of this will depend on the company continuing to move up the smartphone value chain with 5G-capable devices, entry into IoT segments and monetization initiatives for its wide user base. Above all, the recovery of the global economy and smartphone market will be pivotal for Transsion as it gradually becomes more exposed to a wide range of different geographical locations.
Resilient Q2 Performance Driven by Pivot to Value, But Macroeconomic Challenges Remain
August 29, 2022
Transsion Holdings reported a 3.7% YoY increase in its Q2 2022 revenue to RMB 12.1 billion and a 4.5% YoY decline in net profit to RMB 1.04 billion. Considering the macroeconomic headwinds in Transsion’s core markets, the increase in revenue was a bright spot, especially compared with Q1 when the company posted a quarterly revenue drop for the first time since its market debut in September 2019.
Transsion Group Quarterly Revenue
Transsion’s Q2 smartphone shipments grew 4.1% YoY, an impressive performance despite a shrinking global market, whichretreated 9%YoY during the quarter. Geopolitical tensions and high inflation rates have hurt the global smartphone market in general. Further, companies exposed to the low- to mid-end segments and emerging markets are more prone to secondary impacts, such as the strain on customers from high food and energy prices, weaker local currencies against the US dollar, and higher government taxes and levies on ‘non-essential’ imports like consumer electronics.
Transsion defied these global trends through resilient performance in its Africa home market and strong growth in other regions, most noticeably in India and Southeast Asia. In both these regions, Transsion is ranked sixth in terms of shipments, helped by the company’s double-digit annual growth rate. Gaining a foothold in these new markets helps the company diversify its revenue sources and also allows the company to move up the pricing curve. According to Counterpoint’s Model Sales Service, Transsion’s smartphone average selling prices (ASP) increased 14% YoY, mainly driven by the success of the company’s TECNO and Infinix brands. The brands’ latest products received good market reception and are edging closer to the $150 mark.
Due to the increased pricing, Transsion’s Q2 normalized gross profit margin reached 22.9%, up 1.4% YoY, to reverse a six-quarter slump. However, the bottom line retreated, mainly due to a significant 40% increase in R&D spending. In our view, this is a positive sign that the company is moving out of its comfort zone of focusing only on pricing competitiveness in its African home market and committing to make more sophisticated products for the higher value markets.
Despite our positive commentary, we also recognize the significant challenges brought on by the macro environment, which is not likely to ease in the near term. In Q2 2022, we observed inventory challenges across handset and component makers, including Transsion. The company’s inventories reached RMB 9.6 billion as at the end of Q2, 27% higher than that in Q4 2021 and 73% more than in Q4 2020. Currently, inventory levels are 19% of the company’s 12-month trailing revenue, which could become an issue if it remains high or if revenue declines in the coming months.
We also note that the company’s recently announced stock options plan for 2022 is linked to its targeted 2024 financial metrics. The plan suggests that the company forecasts revenue and net profit to increase 15% and 32.25% respectively as a baseline case, or 20% and 44% respectively as a bull case by 2024. The targets are compared with the metrics from 2021, which was a strong financial year for Transsion, indicating that the company is extremely bullish about the next couple of years.
Growth Worries in Africa, India See First Revenue Drop Since COVID-19, But Diversification Efforts on Track
June 6, 2022
Transsion Holdings reported Q1 2022 earnings that saw revenues and net profit drop 1.8% and 7.6% YoY respectively. This is Transsion’s first revenue and profit drop since it went public in September 2019. The company’s performance during the quarter was impacted mainly by the stalled growth in its home market Africa and in India, which saw inflationary pressures hitting lower-income consumers significantly. Smartphone sales were down in the region for the first time since the pandemic. However, the company was cushioned by growth in other regions, and margins remained intact despite inventory build-up.
According to Counterpoint Research’sMarket Pulseservice, cumulative Transsion smartphone shipments reached 18.9 million units in Q1 2022. This was a small increase of 1.6%, the slowest YoY growth rate since the pandemic.
Transsion Group Quarterly Smartphone Sales
Source: Counterpoint Market Pulse Service
Looking further under the hood, there are significant regional disparities, however. In Africa, Transsion saw a 7% decline in smartphone sales in Q1 2022, mainly due to the inflationary impact on consumer sentiment. Most large African markets were already running double-digit inflation during 2021, but the Ukraine war had far-reaching consequences as food imports were hampered, affecting lower-income consumers more. Depreciating local currencies also put pressure on the company’s supply chain and margins.
In India, similar macro concerns and impact of the Omicron wave saw the smartphone market record the first Q1 drop ever. Here, Transsion smartphone sales dropped 22%. The market sentiment in India is expected to remain weak in Q2, but sales are likely to see growth due to the low base of Q2 2021 when the market was hit hard by the Delta wave.
另一方面,Transsion弹性执行ances in the Middle East and APAC, which show its diversification efforts are working. In both regions, the company is finding success in penetrating the entry-level segment in key countries like Pakistan and Bangladesh. Transsion’s 79% sales increase in APAC runs counter to the broader market. In the Middle East, the 18% sales increase is likely to extend further in 2022, as the region is expected to be the best-performing smartphone market due to the economic growth driven by oil revenue increases, mainly in Gulf Cooperation Council (GCC) countries.
Transsion Group Smartphone Sales by Region, Q1 2022 vs Q1 2021 (In million units)
Source: Counterpoint Market Pulse Service
Transsion’s normalized gross profit margins for Q1 2022 decreased to 21.4%, or 2% less than the same period in the previous year. Significant cost pressures persisted due to lingering supply chain disruptions, component shortages and high inventory levels. Rising revenues from other regions are also likely to cap the company’s margins, as it enjoys far higher margins in its home market Africa. However, Transsion now derives 87% of its revenues from the smartphone business, and as feature phone-to-smartphone migration continues for its emerging market customers, we see further room for the company’s revenues and margins to grow.
Transsion signs off 2021 in style: Smartphone market share continues to increase in emerging markets
April 28, 2022
Transsion Holdings reported 2021 results with revenues up 31.8% YoY and net profit up 45.5% YoY. These results were driven mainly by increasing smartphone sales and market share, which widened in the core African market, while achieving breakthroughs in key South Asian countries like Pakistan, Bangladesh and India. IoT and internet services, which accounted for 6.5% of the group’s revenues in 2021, also saw robust triple-digit growth.
According to Counterpoint Research’sMarket Monitorservice, cumulative Transsion handset shipments reached 184 million units in 2021, an all-time high. Smartphones, in particular, grew 61%.
Transsion Group Handset Shipment and Revenue Analysis
Sources: Counterpoint Market Monitor Service, Transsion Group financial statements
Transsion continued to do well in its home market Africa, where it already dominates with close to 45% share across its three brands. However, Africa accounted for only half of the shipment increases in 2021. In India, Transsion almost doubled its smartphone sales in one year, while the company is already the biggest smartphone OEM in Pakistan. As such, Transsion smartphone sales attributed to Africa decreased from 67% in 2020 to 56% in 2021. A widening geographical footprint, accompanied by an enriched portfolio, can help the company diversify its customer base and increase its technical prowess.
The company also reported surprisingly good revenue growth from other businesses. Revenues not attributed to handsets, which mainly include IoT and internet services, grew 68% YoY to RMB 3.2 billion. Their contribution to group revenues now stands at 6.5%. This is due to new products in the wearables, TWS, notebook and TV categories. But more importantly, Transsion’s ‘Matrix of Internet Products’ became meaningful growth engines. Apps under the Transsion umbrella saw installations increase 240% YoY, with three apps – Phoenix, Boomplay and Scooper (with MAUs of 100 million, 68 million and 27 million respectively) – becoming main gateways to the internet for African users. User and eventually revenue growth from apps will become ever more important factors in Transsion’s future strategy, particularly in Africa, as its handset business will inevitably hit road bumps in the future.
Transsion IoT & Internet Services Analysis
Source: Transsion Group Financial Statements
Transsion毛利率的规范化decreased to 21.3% for the year, after staying above 23% for the first three quarters of 2021. There were significant cost pressures in the second half of the year, especially due to supply chain disruptions and component shortages. We expect these issues to gradually ease in 2022 as the supply and demand dynamics in the semiconductor industry improve, and supply chains become more resilient to shocks. However, foreign exchange fluctuations and inflationary pressures in key markets will be the new destabilizing factors for the company, as risks shift from the supply to the demand side in the wider global handset market.
Transsion handset sales, profit continue to improve despite cost pressures
November 24, 2021
Transsion Holdings reported Q3 2021 results with revenues up 16% YoY and net profit up 33% YoY. These positive results were driven once again by further pivoting to smartphone sales, especially in the core African market. According to Counterpoint Research’sMarket Monitorservice, cumulative Transsion smartphone shipments surpassed 20 million units for the first time ever, coming in at 23 million. This represents a growth rate of 75% YoY.
Transsion Group Handset Shipment and Revenue Analysis
Sources: Counterpoint Market Monitor Service, Transsion Group financial statements
在功能手机发货量增速放缓Q3 2021, the bulk of Transsion’s revenue growth was driven by smartphones. Heading into the Q4 holiday shopping season and 2022, we may see Transsion’s smartphone shipments overtake feature phones for the first time.
在过去的几年中,Transsion smartphones penetrated more markets, the average selling price (ASP) saw a noticeable increase. While the ASP showed a mixed trend in the second half of 2019, it increased decisively during 2020 and is showing no signs of slowing down in 2021. Looking at Transsion’s brands closely, TECNO, itel and Infinix saw ASP increases of 56%, 43% and 29% respectively over the past 18 months. These point to positive consumer sentiment and changing perception of digital and mobile services. More consumers in emerging markets now recognize that a decent smartphone is an important component of their daily lives.
Transsion Group Smartphone Average Selling Price ($)
Source: Counterpoint Handset Model Sales Service
Transsion毛利率的规范化increased to 25.3% in Q3, compared to 25% in Q2 and 23% in Q1. The company managed to navigate the ongoing component shortages well and was able to pass upstream cost increases to consumers. Selling, General & Administrative (SG&A) expenses and financing costs dropped as well. Furthermore, ventures outside sub-Saharan Africa, including in higher value markets in Southeast Asia and the Middle East, contributed to higher profit margins. Profitability may increase further as the supply chain situation stabilizes in 2022.
Smartphone Sales and Profitability Double Boost as Company Diversification Efforts Gather Pace
September 30, 2021
Transsion Holdings continued to see strong performance in H1 2021 with revenues and net income growing 65% and 59% YoY respectively, driven primarily by surging handset sales in its home market Africa, as well as successful ventures in other developing countries. According to Counterpoint Research’sMarket Monitor service, cumulative Transsion smartphone shipments in H1 2021 reached a record high of 37.3 million, taking the company’s share in the global smartphone market to 5.5% from 3.5% a year ago.
Counterpoint Research – Market Monitor Service
Looking at Transsion’s overall product strategy, we can see that it is shifting materially from feature phones to smartphones in response to market changes. In 2019, 33% of the company’s handsets were smartphones, but in the latest quarter this number has gone up to 47%. In the company’s latest earnings release, smartphones account for over 80% of its revenues, a record high.
Transsion financial report, Counterpoint Research analysis
Commenting on Transsion’s commitment to smartphones,Senior Analyst Yang Wangsaid, “Transsion is rapidly transforming and upgrading its product portfolio. The move is driven by the accelerating demand for internet-capable phones in itshome market Africa, where the COVID-19 pandemic showed the value of the internet to consumers who were forced to stay at home. The region’s internet and mobile money services are also gathering steam along with a significant drop in data costs. While all OEMs stand to benefit from the consumer’s shift, Transsion gains the most as its distribution and pricing strategies are most ready to tap into new consumer clusters, which previously did not consider buying a smartphone.”
Counterpoint Research – Market Monitor Service
Apart from product transformation, the other significant shift in the Transsion strategy is geographical diversification. Compared to two years ago, Transsion’s share of smartphone shipments in the Middle East and Africa (MEA) region has dropped from 83% to 68%. On the other hand, shipments have increased rapidly in APAC countries such as India, Pakistan, Bangladesh, Indonesia and Thailand.Indiaspecifically has been the growth engine for Transsion, with shipments almost reaching 20% of the company’s global total in H2 2020, before the Delta wave halted the progress.
Commenting on Transsion’s moves in India,SeniorAnalyst Prachir Singhsaid, “Transsion brands, especially TECNO, have been focusing on a hybrid channel strategy in India, with an increased emphasis on online channels. This was executed with great success as Transsion brands contributed to 7% of the online smartphone market in India in Q2 2021, compared to 2% in Q2 2020. TECNO’s online smartphone shipments grew almost 20x YoY in Q2 2021, while itel increased its online share by launching online exclusive models like the Vision 1 Pro and A47. From a product positioning point of view, Transsion brands have been focusing on providing specs like higher display size, multi-camera capability and bigger battery, which are the top spec preferences for consumers in the sub-$150 segment.”
Going forward, Transsion’s fundamentals are expected to remain solid, as it continues to hold enormous clout in its Africa home market. Smartphone penetration will gradually expand, with new users continuing to be brought into the internet world. On the other hand, Chinese brands such as Xiaomi, OPPO and vivo are strengthening their market penetration efforts in certain African markets to address the medium-range segment (<$200). This price band is above Transsion’s typical playing field, so the newcomers are unlikely to affect its market share in the short term. However, we have seen in recent years Transsion’s effort to produce more premium phones and enter the <$200 price band. Therefore, there may be a time in the future when Transsion competes directly with the likes of Xiaomi, OPPO and vivo.
Indonesia’s smartphone shipments declined in Q2 2023 due to macroeconomic headwinds.
OPPO overtook Samsung to recapture the top spot with a 21% share.
Top OEMs except Infinix recorded declines. Infinix’s shipments grew 17% YoY.
Xiaomi’s shipment decline softened to 12% YoY in Q2 2023.
5G smartphone shipments in the <$400 price band increased 11% YoY.
Jakarta, London, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – August 14, 2023
Withmacroeconomicheadwinds continuing to impact demand, Indonesia’s智能手机shipments declined 10% YoY in Q2 2023, according to Counterpoint’sMonthly Indonesia Smartphone Tracker. The increase in shopping activity during the Eid al-Fitr festivities in April was also lower than last year. Promotions such as price discounts, bundled offers and installment and trade-in schemes failed to have the desired impact on sales. Consumers’ buying interest shifted to accommodating the increased price of commodities like fuel, and household and personal products, along with services availed during the festival season, such as travel.
Indonesia Smartphone Shipments Market Share by OEM, Q2 2022 vs Q2 2023
Source: Counterpoint Monthly Indonesia Smartphone Tracker, 2023
OPPOrecaptured the top spot inthe marketin Q2 2023 with a 21% share,largely supportedby its low-endmodels intheA17 series.The brandcontinued its aggressive marketing campaign and the models released in the previous quarter, such as the Reno8 T series and Find N2 Flip, had a spillover effect on its visibility in the market. The Galaxy A04 series made a significant contribution toSamsung’s volumes, restricting the brand’s shipment share decline to just 1% point.
Among topOEMs, onlyInfinixsaw an increase in its shipments, at 17% YoY. The brand focused on the <$200 price band, offering better specifications in its models. Besides, Infinix was aggressive with its marketing activities to increase awareness and visibility for the brand. Its newly launched products, such as the Note 30 series, Hot 30 series and the Smart 7 series, contributed significant volumes to the brand’s overall shipments.
Xiaomi’s shipment decline significantly softened to 12% YoY in Q2 2023 from 47% YoY in Q2 2022. Recent initiatives indicated thatXiaomihad worked on strengthening its supply and distribution. The OEM made strong marketing moves during the quarter, such as new product launches and rejigging of discount schemes. Xiaomi sub-brand Redmi’s performance was driven by its newly launched models, especially the Redmi A2 series and Redmi Note 12 series.
5G智能手机shipments in the <$400 price band increased 11% YoY in Q2. Key OEMs in this segment included Samsung with its Galaxy A14 5G, A23 5G and A34 5G series and Xiaomi with its Redmi Note 12 series. Newcomer iQOO Z7 5G series also joined this segment.
Outlook
Looking ahead, we expect a continued macroeconomic recovery in H2 2023 to lift the smartphone market.Senior Analyst Febriman Abdillahsaid, “Price becomes more crucial considering the current macroeconomic climate, which has increased commodity prices. Giving incentives to consumers, like discounts, bundled offers, bonuses and trade-in schemes, can be one option to keep the market attractive. The incentives may even be relevant for the mid-range and premium segments.”
At the brand level, Xiaomi’s new initiatives to bring prices down may attract consumers and help the brand grow this year. Infinix may grow further as it becomes more popular in the market.
Feel free to contact us atpress@www.arena-ruc.comfor questions regarding our latest research and insights.
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.
Philippines smartphone shipments fell 20% YoY due to sustained low demand driven by a combination of factors like high taxes and inflation.
Xiaomi rose to the third position on the Note 12 series’ success and 19% YoY shipment growth.
Back-to-back launches propelled TECNO’s YoY growth to 73%.
Premium buyers shrugged off higher costs to drive the segment’s 26% YoY growth.
5G smartphones under $200 witnessed 25% YoY growth.
Jakarta, Hong Kong, London, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – August 10, 2023
Smartphone shipments in the Philippines recorded a 20% YoY decline in Q2 2023 due to sustained low demand driven by a combination of factors such as high consumption taxes, elevated production and distribution costs following public utilities’ privatization, and a weak Peso, according toCounterpoint Research’s Philippines Monthly Smartphone Channel Share Tracker.
Source: Counterpoint Research
Many of the major brands saw significant downswings this quarter. Thoughrealmecontinued to be the number one brand, its market share reduced to 17.3% after a 37% YoY decline in shipments due to limited product launches and weakened smartphone demand. The brand could keep its number one spot due to the popularity of its C55 model, which was also the market’s top-selling model in Q2 2023, and the C53 model, which was sold out on Lazada overnight.Samsungexperienced a YoY shipment decline of 26% in Q2 2023, owing again to fewer model launches and limited promotions in the budget segment.
Xiaomiovertook OPPO to take the third position in the Philippines in Q2 2023. The brand recorded 19% YoY growth boosted by a good reception of its Note 12 series. Xiaomi also held its annual fan festival in April, where it offered promotions, especially on the newly launched Note 12 series and popular 12C model, further fuelling its growth.
OPPOandvivowitnessed shipment declines of 34% and 43%, respectively. Both brands were part of the payday promotions in June, but the offers were restricted more toward the older models to clear inventory.Infinixrecorded marginal growth of around 3% but increased its market share to 9.7% to enter the top five brands for the quarter. Its budget Hot 30 series performed well, while the Note 30 series got a good reception as a decent gaming phone.
TECNOperformed well in this quarter, recording 73% YoY shipment growth driven by its quick, successive model launches. The newly launched Spark Go and Spark 10 series are doing particularly well due to their competitive prices.
Shipments of smartphones priced less than $200 and in the $200-$399 segment decreased by 22% and 16% YoY, respectively, due to constrained consumer spending. The $400-$599 segment recorded a bigger decline of 54% as it saw fewer launches by major brands such as Samsung and realme.
However, the premium segment (>$600) witnessed a 26% YoY increase, the only segment to show YoY growth. Apple still led this segment with a 43% share. The brand’s official reseller, Powermac, has expanded its Apple Premium Partnership store presence to give Apple customers an enhanced experience along with deals and promotions. Other offers by retailers centered around 0% installments and iPhone bundled offers.
For this quarter, 5G smartphones saw a decline in all price segments except the below $200 segment, which witnessed a 25% YoY growth driven by the introduction of Infinix Zero 5G and Note 30, along with TECNO’s 5G version of the Spark 10 series. Telecom operators are making efforts to keep up with operators like Globe Telecom, which recently rolled out its 5G services at 66 more sites. However, 5G infrastructure development is still slow in the Philippines and is mainly centered around urban areas like Greater Manila, Cebu and Davao.
Outlook
Inflationary pressures have been decreasing in the Philippines, thus giving some relief to consumers. While we may see another quarter of YoY decline, demand is likely to increase, especially with online and offline channel promotions. The premium segment is also expected to do well as Apple and Samsung launch premium models in the coming quarter.
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.
The ≤$200 price band grew 2.0% YoY in Q1 2023. Samsung and Infinix’s entry-level smartphones saw double-digit growth YoY.
10.2% of Q1 shipments comprised newly launched models. Most of them were shipped in March 2023, facing the Ramadan shopping season.
5G smartphones took a 17.2% share in Q1 2023.
In the high-end and premium (≥$400) segments, Apple led with 17.7% YoY growth in Q1 2023, followed by OPPO, Samsung and Asus.
Jakarta, London, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – May 19, 2023
Indonesia’s smartphone shipments declined 8.1% YoY inQ1 2023after the shopping season of Q4 2022, according toCounterpoint’sMonthly Indonesia Smartphone Tracker. Thanks to Ramadan festivities, a further drop in quarterly shipments was limited by the increased shipments in March. The decline was driven by mid-range to premium smartphones, which decreased 25.7% YoY. On the other hand, the entry-level segment grew 2% YoY in Q1 2023.
Smartphone OEMs launched more new models in Q1 2023, especially near or during Ramadan festivities in March. New models accounted for 10.2% of Q1 2023 shipments, a growth of 4.9% YoY. Commenting on the increase in shipments during Ramadan,Senior Analyst Febriman Abdillahsaid, “Indonesians use the Ramadan shopping season to upgrade goods or buy gifts. The smartphone is among the items they are most likely to purchase during Ramadan. Since the smartphone’s role has expanded from just being used for talking to someone to covering other daily activities like shopping, working, studying, transportation and financing, the consumer attitude toward buying smartphones has shifted to looking for reliable but pocket-friendly devices. That is why facing Ramadan in March 2023, smartphone OEMs added various new models across price bands, where 36.8% were new entry-level smartphones. Many of the new entry-level models are equipped with improved basic specifications, such as 6-8GB RAM, 128GB storage and better chipset, camera anddisplay. These improved specifications could attract consumers to upgrade their old smartphones. Various promotions during Ramadan also tempted consumers to buy smartphones. We can expect the same situation to continue in April during Eid holidays.”
Indonesia Smartphone Shipments Market Share, Q1 2022 vs Q1 2023*
Source: Counterpoint Monthly Indonesia Tracker, 2023
*Chart data updated on May 24.
Samsung and Infinix contributed more to the growth of entry-level smartphones. Samsung strengthened its footprint in this segment and grew 18.7% YoY in Q1 2023, mostly supported by the Galaxy A04 series. Infinix had impressive growth at 44.6% YoY. Infinix’s main attractions included bigger RAM/storage than competitors, such as in the Infinix Hot 12, Hot 20 and Note 12 series. New entry-level models with 4-6GB/128GB variants were also introduced by Samsung, realme, Redmi and TECNO in this quarter, with more shipments being observed in March.
NFC feature was also available in more entry-level smartphones. As a result, entry-level smartphones with NFC grew 11.1% YoY in Q1 2023. Newly launched TECNO Spark 10, realme C55, Redmi 12C, Redmi Note 12 and Samsung Galaxy A14 added to the tally of entry-level smartphones with NFC. NFC is important for financial transactions, in addition to reading QR codes that have been popular since last year.
Ramadan festivities also helped prevent further decline for mid-range smartphones ($200-$399). The increase in mid-range shipments was also driven by new models, which accounted for 23.8% of mid-range shipments in Q1 2023. New mid-range models launched in Q1 2023 came from vivo, Samsung, Redmi, OPPO, realme and Infinix.
In the high-end andpremium(≥$400) segments,Appleled with 17.7% YoY growth in Q1 2023, followed byOPPO, Samsung and Asus. Apple initiated fresh moves in Q1 2023 to increase iPhone shipments. Price reductions were a bonus for a consumer seeking a new iPhone. Trade-in schemes and instalment offers from retailers also attracted consumers. And the new partnership with Blibli to run Apple’s authorized online store added to the visibility of the iPhone in the market.
As Indonesians started to do offline activities more often than during COVID-19 restrictions, offline smartphone stores were also impacted. The stores saw an increase in visitors in Q1 2023 compared to last year, except during shopping seasons, like in December. However, the online channel played a good role in introducing new products with its pre-order schemes.
Indonesians still preferred smartphones that were affordable or had a price promotion in this time of economic recovery. Bundled plans for new products and price promotions by smartphone OEMs and retailers during the festivities in Q1 2023, like Chinese New Year and Ramadan, were more appreciated by consumers.
5G智能手机s took a 17.2% share in Q1 2023. They continued to increase their presence in the entry-level segment, growing 3.6% YoY in Q1 2023. 5G entry-level smartphone shipments accounted for 1.3% of entry-level shipments in Q1 2023. 5G mid-range smartphones also grew 8% YoY in Q1 2023, accounting for 34.2% of mid-range shipments.
Outlook
Ramadan and Eid celebrations are a good shopping season for Indonesians when smartphone OEMs also launch special marketing initiatives to attract consumers. This period is also good for launching new products and bundled offers because employees get payroll incentives or the so-called 13th-month salary.
With smartphones being used intensively for digital activities, more consumers are now looking for a reliable affordable smartphone that can deliver a smooth experience during digital activities. This means good connectivity,battery, storage, camera, display and design/dimensions should be available at a reasonable price. On the other hand, new innovations and technologies should be able to bring differentiation among smartphone price segments.
Entry-level smartphones have the potential for better growth considering better in-demand specs like RAM, storage and battery capacity in more models in this segment as well as Indonesians’ need for reliable affordable smartphones.
Going forward, offline smartphone channels may grow but slowly depending on the progress of domestic macroeconomic recovery. Besides, consumers still want to try the product, especially for the mid-range and above segment. To some extent, advocacy by shopkeepers is also still needed for consumers’ assurance even though they have their own model or brand preferences.
OEM rankings have changed from our initial May 19 publication on updated shipment data.
This research note is based on preliminary data and subject to change. Feel free to contact us atpress@www.arena-ruc.comfor any questions regarding this note or other insights.
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.
Smartphone shipments in Southeast Asia’s five key markets* declined 13% YoY in Q1 2023.
Apple’sshipments increased by 18% YoY during the same period.
Infinixwitnessed a 41% increase as the brand grew across SEA markets.
而中高端(201 - 600美元)不等the most, the>$600 rangeshipments increased by 4%.
Jakarta, Hong Kong, London, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – May 15, 2023
Smartphone shipments inSoutheast Asia’sfive key countries (Indonesia, Thailand, Philippines, Vietnam and Malaysia) fell 13% YoY due to low demand and a seasonal drop, according to Counterpoint Research’sSoutheast Asia Monthly Smartphone Channel Share Tracker.
All key SEA countries saw a decline in Q1 2023 but some more than others. Countries like Vietnam received relatively more shipments in Q4 2022 and so OEMs felt the need to reduce volumes in Q1 2023. Consumer sentiment has not completely revived in Vietnam. Factors like a 10% fall inSamsung’sproduction, seasonally low smartphone demand after Q4 2022, and reduced revenues for OEMs and operators were also among the driving factors.Indonesiaand Thailand did comparatively well than the other countries as demand started improving in March 2023.
Source: Counterpoint Research Southeast Asia Monthly Smartphone Tracker
All key SEA countries are coming out of the geopolitical effects from last year while still reeling under some inflation effects. For instance, thePhilippinessuffered high inflation at the start of this year. However, operators continue to remain aggressive on 5G development and partnerships with tech companies. The industry has resumed its earlier levels of advancement as foreign investments are again entering big economies likeIndonesiaand Malaysia. There are collaborations happening on the financial services front as well. For example, OPPO inIndonesiais partnering with banks to provide banking services while AIS, the leading operator inThailand, has partnered with Bangkok Bank to provide financial services on digital platforms. Consumers are not exactly feeling the improvements on the ground though. Most smartphone purchases are being delayed.
Source: Counterpoint Research Southeast Asia Monthly Smartphone Tracker
Vietnam is a growingAppleiPhone market. The demand for theiPhone 13 and 14series was good in Q1 2023. Indonesia has seen growth iniPhoneshipments as well. Overall, iPhone shipments grew 18% YoY in Q1 2023.
Infinixis the official smartphone partner for Mobile Legends professional league in the Philippines. Infinix has improved on promoting itself as agaming brandin the region. Overall, though Infinix’s volumes are not on a par with the top brands, it continues to grow in the region. The brand grew 41% in Q1 2023.
While certain brands have been in focus at the start of this year, the price range share favored two consumer groups in Q1 2023. <$200 smartphones witnessed a 4% YoY growth despite an overall decline in volumes. Since entry-level phone shipments had been consistently low, pent-up demand motivated higher shipments in Q1 2023. However, not all countries saw a spike in low-end smartphone demand. OEMs in Vietnam were still looking to push these volumes. ThePhilippines’ low-income families are reeling under high tax and inflationary issues, restricting low-end smartphone purchases. Premium-end (>$600) smartphone shipments continued to rise and saw 4% YoY growth. Mid-to-high-end ($201-$600) smartphone shipments suffered the most across the region.
Commenting on the SEA economies in 2023,Senior Analyst Glen Cardozasaid, “Southeast Asia is at a stage where different consumer types are behaving in a different manner. Low-end smartphone buyers are recovering but they are not just there yet. Mid-to-high-end smartphone buyers are holding on to their wallets and extending the ownership of their phones, whilehigh-to-premium smartphonebuyers are unaffected by the economics of the situation. These consumers are going out and choosing to buy the S series, foldables andiPhones. While5G正在成为一种常态,运营商推出creative packages and providing options for all types of smartphones. The coming months are likely to see a bit more improvement in consumer sentiment while governments make sure that their countries remain largely unaffected by global macro issues.”
The Vietnamese government is looking to commercialize 5G in the country this year. This will facilitate a new level of manufacturing and consumer usage if done earlier than later. While theMalaysiangovernment and industry work on 5G commercialization and the terms for it, consumers are already equipped with5G smartphones.
With an increase in tourism in SEA countries earlier in the year, there is a chance that tourism business and revenue will increase this year. Countries likeThailandare also concentrating on eco-tourism initiatives that focus on sustainability, all through smartphones. All these developments are likely to spell normalcy for the public, leading to a likely improvement in consumer sentiment in the coming quarters.
*Key Southeast Asia countries/marketsinclude Indonesia, Thailand, Philippines, Vietnam and Malaysia.
Feel free to contact us atpress@www.arena-ruc.comfor questions regarding our latest research and insights.
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.
意味着智能手机shipments retreated 11% YoY in Q1 2023, or 3% in QoQ terms.
The usual macro headwinds continued to weigh on the market, including high inflation rates, local currency depreciation and weak consumer sentiment.
Samsung performed resiliently, with shipments slightly down but market share trending up.
Apple outperformed prevailing market trends. Its YoY shipments were up 35%.
Transsion Group shipments dropped 19% YoY, as itel continued to slide while Infinix advanced.
London, Boston, Toronto, New Delhi, Hong Kong, Beijing, Taipei, Seoul – May 11, 2023
Smartphone shipments in the Middle East and Africa (MEA) region fell 11% YoY and 3% QoQ in Q1 2023 to reach the lowest Q1 shipment level since 2016, according to the latest research from Counterpoint’sMarket Monitor Service. Much of the prevailing economic woes of the region continued, including high inflation rates, local currency depreciation and weak consumer sentiment. Smartphone OEMs were stuck in low gear as inventory correction, channel efficiency and cost cutting continued to be the main themes in the region.
Commenting on the market’s performance,Senior Analyst Yang Wangsaid, “The意味着智能手机market saw another tough quarter as the macroeconomic environment remained challenging. Difficulties impacting consumer spending towards big-ticket upgrades such as smartphones are now well known, and both consumers and OEMs are adjusting to the new realities with extra caution. The prospect of a V-shaped rebound has dimmed as companies prioritize inventory management, cost controls and streamlined product portfolios.”
Despite the gloomy tone, there were early signs of stabilization towards the end of the quarter. For instance, most OEMs saw encouraging sell-out numbers due to the Ramadan and Easter sales promotions. Most notably, this manifested at the top of the market, whereApple’s iPhone 14 series(particularly the higher-priced Pro and Pro Max models) has proven to be extremely popular.Samsung’s new 5G models in the A series sold well. The mid-range OEMs or mid-range segments within OEMs have also been strong, with the likes ofXiaomi, TECNO, Infinix, HMD Nokiaandrealmeall achieving above-average market performance.
On the other hand, the impact of currency depreciation and inflation has hurt lower-income households much more than the average. In Q1 2023, this manifested initel’s 45% YoY drop. itel is struggling to keep refreshing its portfolio while keeping costs under control.OPPOandvivosomewhat stabilized after the product availability situation improved, but the two brands continued to shed market share as distributors remained cautious on the brands’ commitment to the region.
Commenting on the direction of the MEA smartphone market, Wang added, “Poor consumer demand is likely to remain the main theme for the rest of the year, as consumers postpone upgrades while holding onto their current handsets a little bit longer. We, however, expect that the inventory situation will improve gradually by the second half of the year, which will be followed by more ambitious product portfolio revamps and promotional activities by OEMs and distributors. This will coincide with better economic conditions as global interest rates and energy prices stabilize, providing much-needed breathing room for consumers in emerging markets.”
Feedback or a question for the analyst that wrote this note?
Yang Wang
Senior Analyst
Counterpoint Research’s market-leadingMarket Monitor,MarketPulse andModel Salesservices for mobile handsets are available for subscribing clients.
Feel free to contact us at press@www.arena-ruc.com for questions regarding our in-depth research and insights.
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.
The global smartphone market declined by 14% YoY and 7% QoQ to record 280.2 million unit shipments in Q1 2023.
Samsung replaced Apple as the top smartphone player in Q1 2023, driven by its mid-tier A Series and the recently launched S23 series.
Apple’s YoY shipment decline was the least among the top five brands. Consequently, it recorded its highest-ever Q1 share of 21%.
Global smartphone revenues declined by 7% YoY to around $104 billion. Apple, Samsung, Xiaomi increased their Average Selling Prices YoY.
London, New Delhi, Hong Kong, Seoul, Beijing, Denver, Buenos Aires – May 5, 2023
The global smartphone market faced further contraction in the post-holiday-season quarter with shipments declining by 14% YoY and 7% QoQ to 280.2 million units in Q1 2023, according to the latest research fromCounterpoint’s Market Monitor service.
Source: Counterpoint Research Market Monitor Preliminary Data, Q1 2023 Note: OPPO Includes OnePlus
Commenting on overall market dynamics,Senior Analyst Harmeet Singh Waliasaid, “Smartphone shipments declined further in Q1 2023 following the weakest holiday-season quarter since 2013, as theslower-than-expected recovery in Chinawas marred by alarming bank failures on both sides of the Atlantic further weakening consumer confidence in the face of unrelenting market volatility. The smartphone market was also hit by some major brands supplying fewer new devices to a market struggling with high inventories at a time when consumers are choosing to renew less often, but with more durable smartphones when they do buy.”
Consequently, global smartphone revenue and operating profit also declined, although not as much as shipments. This was due, in part, to the lower-than-usual decline in Apple’s shipments, to 58 million units in Q1 2023. Apple thereby managed to capture nearly half of all smartphone revenues. While Samsung’s shipments declined 19% YoY despite growing by 4% QoQ to 60.6 million units, the launch of the Galaxy S23 series enabled Samsung’s ASP to increase to $340, up 17% YoY and 35% QoQ, which in turn contributed to global revenues falling relatively less. Apple and Samsung also remain the most profitable brands, together capturing 96% of global smartphone operating profits.
Source: Counterpoint Research Market Monitor Preliminary Data, Q1 2023 Note: OPPO Includes OnePlus
Commenting on Apple’s performance,Research Director Jeff Fieldhacksaid, “Apple outperformed the market due to several factors. Firstly,the stickiness of its ecosystemprevents its customers from choosing a cheaper smartphone even in times of economic difficulty. Secondly, with sustainability becoming a priority for many, not only hasApple captured nearly half of the secondary market, it is also attracting users who are willing to spend more for longer-lasting devices. Thirdly, it is the preferred brand for Gen Z consumers in the West and is thereby positioning itself for sustained success. At the same time, it has been filling the void left by Huawei inChina’s premium market. So, Apple is able to weather economic and other fluctuations better than its rivals while enjoying unflinching loyalty. This also meant Apple was able to meet the demand for the iPhone 14 series which spilt over Q4 2022, when it had problems at its Zhengzhou factory, rather than that share dissipating or transferring to rivals.”
Besides Samsung and Apple, the biggest global smartphone brands from China, Xiaomi, OPPO* and vivo, will have to wait longer for their shipments to rebound as each of them experienced double-digit annual declines in Q1 2023. This was due to a seasonal slowdown in China at a time when the country’s economic recovery is taking longer than expected. OPPO* has recently been facing challenges in overseas markets too. It has had to exit the German market after losing a patent lawsuit with Nokia. At the same time, the three brands’ revenues and profitability have struggled too. While OPPO* and vivo saw both annual shipment and ASP declines, leading to double-digit revenue declines, Xiaomi’s slight annual ASP growth could also not prevent a double-digit revenue decline in Q1 2023.
The smartphone market as a whole, too, is likely to struggle for the next couple of quarters. Commenting on the near-term outlook,Research Director Tarun Pathaksaid, “The persistent issues affecting the smartphone market are unlikely to abate anytime soon. Moreover, the recent decision by OPEC countries to cut oil production may lead to higher inflation rates, causing a reduction in consumers’ spending power. As a result, even if the decline in smartphone shipments stabilises, a significant recovery is unlikely before the year-end holiday quarter.”
*OPPO includes OnePlus
You can also visit ourData Section(updated quarterly) to view the smartphone market share forWorld,US,ChinaandIndia.
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.
意味着智能手机shipments retreated 18.4% YoY in Q4 2022 and 12.1% YoY in 2022.
At 148 million units, 2022 shipments were the lowest since 2015.
Samsung performed resiliently in 2022, with shipments and market share increasing YoY.
Transsion Group’s 2022 shipments dropped 13% YoY. This was mainly due to a 27% drop of itel.
Xiaomi saw a flat year but much better performance than in 2021.
5G shipments increased 47% YoY to account for 18% of the overall shipments.
London, Boston, Toronto, New Delhi, Hong Kong, Beijing, Taipei, Seoul – February 23, 2023
Smartphone shipments in the Middle East and Africa (MEA) region fell 12.1% YoY in 2022 to 148 million units, the lowest shipment level since 2015, according to the latest research from Counterpoint’sMarket Monitor Service. After a bright start to the year, the rise in energy and agricultural goods prices caused by the Ukraine war dampened consumer sentiment in the region, with themacroeconomic situationgradually worsening as the year went on.
看着去年第四季度,智能手机出货s dropped 18.4% YoY, a slightly better reading than the record low of the 20.4% drop recorded in Q3 2022. Consumer sentiment may have picked up marginally as the inflationary pressure and foreign currency headwinds receded. Still, the market environment remained very challenging.
Commenting on the market’s performance,Senior Analyst Yang Wang说:“今年是智能手机市场关闭with another tough quarter. Much of the difficulties, such as high inflation rates, energy and food prices, and depreciating domestic currencies against the US dollar, were caused by factors outside of the control of market participants. With the drop in consumer sentiment, OEMs were put under enormous pressure and had to take drastic measures such as destocking, cutting marketing and channel spending, and taking a very careful approach to pricing.”
Source: Counterpoint Research Market Monitor, Q4 2022 Notes: Xiaomi includes POCO and Redmi; OPPO includes OnePlus; Figures may not add up to 100% due to rounding.
Market leaderSamsungsaw YoY volume and market share growth in 2022, a terrific performance given the market realities. This was due to the success of the Galaxy A series in capturing the market for aspirational upgraders, particularly those that may be getting their first 5G devices. The company also benefitted from a significantly improved supply chain position, giving distributors clarity and certainty in a time of turbulence.
TranssionGroup brands continued to take the MEA region’s biggest share of smartphone shipments, with an unchanged market share of 32%. However, the company endured a volatile year, withTECNOanditelboth shedding shipment volumes in double digits due to exposure to the price-sensitive entry segment, whileInfinix从2022年上半年的强劲发展势头仓促reated towards the end of the year. Aggressive destocking initiatives mostly bore fruit, as TECNO and Infinix returned to launching higher-end devices during the shopping season.
Xiaomifinished the year at the third spot among OEMs in the MEA region. It was a relatively successful year for the company with volume and market share gains. Supply issues largely disappeared, and the company saw good traction in the mid-range segment, particularly for the Redmi Note 11 and Redmi 10 series. Xiaomi is expected to take the competition to Samsung’s A series as it broadens the availability of affordable 5G devices across the region.
Apple’s shipments dropped YoY, but the brand saw its market share increase due to broadened distribution in the region and the success of the iPhone 13 series. The iPhone 14 series launch has not been as successful as the iPhone 13 series. However, sales have concentrated towards the higher-end iPhone 14 Pro and Pro Max models, thus replicatingApple’s value gains seen in other more developed markets.
Source: Counterpoint Research Market Monitor, Q4 2022
One of the spotlights in the MEA smartphone market in 2022 was the growth of the 5G segment. 5G smartphone shipments grew 47% to reach an 18% share of the overall shipments against our forecast of 16.5% at the beginning of 2022. While 5G networks are only available in the GCC countries and certain pockets of Africa’s urban areas, the enthusiasm for 5G devices has been noted across the largest markets. Samsung, having overtaken Apple as the biggest 5G OEM in the region, is well positioned to grow further with its large portfolio of mid-range 5G A-series devices. Xiaomi is also seeing momentum for its mid-range devices, and we are likely to see Transsion brands TECNO and Infinix make a serious play in the 5G market in 2023. While globally 5G smartphone prices are coming down due to the availability of more affordable models, the proliferation of 5G devices in MEA will actually boost the average selling price (ASP) in the region, as customers upgrade to more sophisticated devices. This, in turn, is likely to increase the dollar value of the MEA smartphone market, despite little to no growth in volume expected in 2023.
Counterpoint Research’s market-leadingMarket Monitor,MarketPulse andModel Salesservices for mobile handsets are available for subscribing clients.
Feel free to contact us at press@www.arena-ruc.com for questions regarding our in-depth research and insights.
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.
The global smartphone market declined by 18% YoY to reach 304 million units in Q4 2022.
Apple replaced Samsung as the top smartphone player in Q4 2022, driven by the recent launch of the iPhone 14 series.
The 2022 global shipments declined by 12% to 1.2 billion units, the lowest since 2013.
Global smartphone revenue declined by 9% to $409 billion, the lowest since 2017.
Apple achieved its highest-ever global smartphone shipment, revenue and operating profit share in 2022.
London, New Delhi, Hong Kong, Seoul, Beijing, Denver, Buenos Aires – February 3, 2023
The global smartphone market remained under pressure in Q4 2022 with shipments declining by 18% YoY to the lowest level for a holiday quarter since 2013, even as they grew by 1% QoQ to 303.9 million units, according to the latest research fromCounterpoint’sMarket Monitorservice. Shipments for the full year 2022 also declined to 1.2 billion units, the lowest since 2013.
Commenting on overall market dynamics,Senior Analyst Harmeet Singh Waliasaid, “The war in Ukraine, inflationary pressures, economic uncertainty and macroeconomic headwinds kept the consumer sentiment weak in 2022 while smartphone users reduced the frequency of their purchases. The smartphone market remained under pressure in the fourth quarter of 2022 as the cost-of-living crisis, shortage in the labor market and a decline in consumers’ purchasing power resulted in double-digit declines in the shipments of each of the top five smartphone players.”
Consequently, global smartphone revenue and operating profit also saw a decline, although to a lesser degree than in shipments. An increased mix of premium phone offerings by major OEMs drove up the overallaverage selling price(ASP) by 5% YoY in 2022. The 9% decline in revenue, while lower than in shipments, resulted in annual smartphone revenues amounting to $409 billion, the lowest since 2017. A larger decline was prevented by a 1% growth in Apple, the only top five smartphone OEM to do so.
Commenting on Apple’s performance,Research Director Jeff Fieldhacksaid, “having proficiently managed its production problems, Apple was able to weather a year already marred by economic and geopolitical turmoil better than other major smartphone players. Its iPhone Pro series continued performing well and its share of iPhone shipments could have been even higher if not for the production issues caused by the COVID-19 breakout at the Zhengzhou factory, which produces the vast majority of Pro series volumes. As a result, some Pro series volumes got pushed to January.”
Consequently, its shipment, revenue and operating profit declined YoY in Q4 2022. However, it outperformed a struggling smartphone market in terms of shipment, revenue and operating profit growth, in turn achieving its highest-ever shares of 18%, 48% and 85% in these metrics respectively, in 2022.
Apple also benefited from the premium segment, its primary constituency, being less severely affected by the economic and geopolitical uncertainties that marred the year. Moreover, mature smartphone users are now choosing premium devices that last longer.
Elaborating on the ‘premiumization’ trend,Research Director Tarun Pathak said,“premiumization can also be seen within the Android ecosystem and is being led by Samsung with itsfoldable smartphones. As a result, Samsung was the only top five OEM besides Apple to see a 1% growth in revenue, even though its shipments declined by 5% in 2022 and operating profit declined by 1%. The performance of its flagship smartphones was stronger than market projections. Nevertheless, with a smaller profit decline than the overall smartphone market, its operating profit share increased slightly to 12% in 2022.”
Chinese smartphone players sufferedfrom domestic lockdowns for much of the year in addition to facing global economic and geopolitical difficulties. As a result, the shipments of Xiaomi, OPPO* and vivo fell by more than 20% each. Despite offering premium phones at aggressive margins, Chinese brands are yet to make headway in the premium market and have not been able to capitalize completely on Huawei’s decline. Unsurprisingly, then, their revenue as well as operating profit saw double-digit declines.
We expect the market to remain under pressure until the end of the first half of 2023 and to start recovering thereafter.
*OPPO includes OnePlus from Q3 2021
You can also visit ourData Section(updated quarterly) to view the smartphone market share forWorld,US,ChinaandIndia.
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.
随时与我们达成at press@www.arena-ruc.com for questions regarding our latest research and insights.
In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not. Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.
How to unsubscribe and Termination
You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.
Website Content and Copyright
This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company. – Passwords are for user’s individual use – Passwords may not be shared with others – Users may not store documents in shared folders. – Users may not redistribute documents to non-users unless otherwise stated in their contract terms.
Changes or Updates to the Website
The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified. Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.
Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.
Cookies and Tracking
We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience. This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans. Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.
According to Counterpoint Research, Transsion’s smartphone sales volume grew 3% YoY in the first half of 2023 and 17% YoY in Q2 2023 as demand for TECNO
Much of Transsion’s financial successes can be attributed to its continued commitment to entering new markets. In Q2 2023, Africa accounted for 57% of Transsion’s smartphone sales volume, a net drop of 8% from a year ago. Outside Africa, Transsion smartphone sales grew 35% in Q2 2023, most notably in Latin America, Eastern
Source: Counterpoint Research Market Monitor, Q4 2022
