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4G Smartphones Dominate Mexico’s Q2 2023 Bestsellers List

  • Samsung dominated with five models on the list.
  • Apple’s iPhone 11 was the third best-selling model in Mexico in Q2 2023.
  • 60% of the models in the top 10 list were priced below $150.
  • Samsung’s Galaxy A34, Galaxy A54 5G were the only two 5G models on the top 10 list.

Mexicois the second most important smartphone market in Latin America. The country has the second-highest population in the region and hosts an extremely competitive ecosystem. Mexico’s geographical size and lack of import barriers make it an extremely attractivesmartphonemarket.

The top-selling models accounted for 35% of Mexico’s total smartphonemarketin Q2 2023. The top 10 list almost appears like Samsung’s performance for the quarter as the brand dominated the top-selling chart in Mexico in Q2 2023. Five of the 10 best-selling models were fromSamsung. According to Counterpoint’s Market Pulse Report, Samsung’s share in Q2 2023 was slightly more than 30%.

OPPO and Motorola both had two models in the Q2 2023 top-selling list. Motorola, which has always been a strong player in theMexicanmarket, launched a few new models during the quarter that helped the brand increase its market share. OPPO, a relatively new entrant in theLATAMmarket, managed to retain its third position in market share with two of its models in the top-selling list.

Top-selling models in Mexico
Source: Counterpoint Research Market Pulse, Q2 2023

60% of the models in the top 10 list were priced below $150. This price band accounts for 52% of the overallsmartphonemarket in Mexico. However, premiumization is infiltrating the Mexican market, and the number of models in the >$150 band is increasing in the top-selling list. This trend is accelerating slowly but will surely lead to a higher overall smartphone ASP.

Apple’s four-year-oldiPhone11 has been part of the Mexican bestseller list for a few quarters now. It was the third best-selling model in the Mexican market in Q2 2023. The iPhone 11, which is a 4G model, was the most expensive model on the list. The massive sales of this model reflect the strength of Apple’s branding.

The 4G version of OPPO’s Reno 7 was another model in the bestsellers list priced more than $150. This is quite an achievement for the brand, which arrived in the region just three years ago.OPPOis still building its branding in the Mexican market. The Reno 7 has been in the Mexican top-selling chart since December 2022.

我s noteworthy that only two models in the chart are 5G phones – the Samsung Galaxy A34 and the Samsung Galaxy A54 5G. The latter one is also the most expensive Samsung model in the top-selling list. Meanwhile, Telcel has been pushing its subscriber base to replace their phone with a 5G one. Mexican consumers are still not ready for5Gtechnology. They would rather get more specs than access the technology.

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LATAM Q2 2023 Smartphone Shipments Fall 15.6% YoY Hurt by Regional Economic Crisis

  • Entry of Chinese brands stirring up regional market.
  • Samsung remains regional leader with 36.9% share, followed by Motorola with 21.4% share.
  • Apple’s growth mainly sustained by the iPhone 11.
  • One in four smartphones shipped in the region is a 5G smartphone.

Buenos Aires, San Diego, Denver, New Delhi, Hong Kong, Seoul, London, Beijing – August 24, 2023

Smartphoneshipments in Latin America (LATAM) dropped 15.6% YoY but climbed 2.4% QoQ in Q2 2023, according to the latest data fromCounterpoint Research’s Market Monitorservice. The decline was due to the negative impacts of the regional economic crises and weak global smartphone shipments.

Commenting on the market dynamics,Principal Analyst Tina Lusaid, “LATAM’s economic growth in 2023 is actually slightly higher than forecast. However, this recovery has not yet inspired an increase in the rate of smartphone replacement. Lowconsumerdemand continued to affect the region during the quarter. Although most countries in the region are seeing declininginflation, consumer confidence is yet to bounce back, as political turmoil continues to constrain the general economy.”

Research Analyst Andres Silva added,“Seasonal factors such as Mother’s Day and Father’s Day promotions helped the market grow slightly QoQ in Q2 2023, although the market declined YoY. The entry of manyChinesebrands at once is stirring up the market as they aim for growth, pushing other brands to become more aggressive. However, the YoY decline affected all the top sixcountriesin the region.”

Top Smartphone OEMs’ Market Share in Latin America, Q2 2022 vs Q2 2023

LATAM Q2 2023 - Top Smartphone OEMs’ Market Share in Latin America, Q2 2022 vs Q2 2023
Source: Counterpoint Research Q2 2023 Market Monitor
Note: Figures may not add up to 100% due to rounding

Commenting on the ASP performance in the region,Lu added: “There is a slight premiumization trend going on in the region. Compared to last year, LATAM’s total smartphoneASPonly grew around 4%. This has been a consistent trend. Inflation has some influence on it. However, established brands such as Samsung are pushing to increase the ASP in the region with5Gmodels.”

Market Summary

  • Samsungwas once again the absolute leader in the LATAM market in Q2 2023. However, itsshipmentsand market share declined YoY with weakened performance in most of the countries in the region.
  • Samsung has been very aggressive in offering extra discounts during the promotions. But not enough as its shipments were hurt by the Brazilian market and the entry ofChinesebrands.
  • Since Samsung is focusing more on premium models now, the availability of its models in the lower price bands is becoming restricted. Thus, its overall value dropped -2% YoY.
  • Motorola’s shipments decreased YoY but its market share increased slightly. It increased the number of models in the entry-segment E series. It also increased its brand awareness with the launch of theMotorolaEdge 40 Pro in May with an aggressive advertising campaign.
  • Xiaomi lost share slightly during the quarter but remained stable due to the launch of the Redmi Note 12 during the first week of April. This increased its Q2 2023 shipments and sales.Xiaomi也增加了少品牌出口开放n channels in the region.
  • Xiaomi recovered slightly from its position in Mexico. The participation of the grey market in the southern part of the LATAM region continued to grow.
  • Apple’sshipments and market share both grew YoY in Q2 2023, mainly sustained by the iPhone 11. The4Gsmartphones are still driving Apple’s volume in the region.
  • OPPOcontinued to be a strong fifth player in the region and ranked third in Mexico. Its volume increased by more than 70% in Q2 2023, while its share more than doubled YoY. Despite the growth, its shipments dropped QoQ.
  • HONOR did not make it to the list, but its growth in LATAM has been notable.HONORwas the brand with the most aggressive growth during the quarter. However, it still needs to build on its branding.
  • “Others”, mainly composed of regional brands, continued to decrease YoY. This category was most affected by the entry of low-price-band Chinese brands.

Background

市场研究是一个世界人口对位技术l research firm specializing in products in the technology, media and telecom (TMT) 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.

Analyst Contacts

Tina Lu

Andres Silva

Peter Richardson

Follow Counterpoint Research
press@www.arena-ruc.com

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US Smartphone Shipments Fall 24% YoY in Q2 2023 on Lower Upgrade Rates

  • Shipments declined YoY for the third consecutive quarter amid weak consumer demand.
  • Android smartphone shipments declined 38% while Apple shipments fell 6% YoY.
  • Consumers hesitated to purchase smartphones amid economic uncertainty.
  • Google and Motorola launched new foldable models during the quarter.
  • Low smartphone upgrade rates are likely to persist in Q3 2023.

Denver, Boston, Toronto, London, New Delhi, Hong Kong, Beijing, Taipei, Seoul – July 28, 2023

USsmartphone shipments declined 24% YoY in Q2 2023, according to Counterpoint Research’sMarket Monitordata. This was the third consecutive quarter of YoY declines. Android brands like Samsung, Motorola and TCL-Alcatel saw the steepest declines in shipments, while Apple’s shipments were more resilient. As a result, Apple’s share of shipments increased YoY.

US Smartphone Shipment Share byOEM

US smartphone shipments share by OEM

Commenting on the decline insmartphoneshipments,Research Analyst Matthew Orfsaid, “Consumer demand for smartphones was tepid in Q2 2023, with the summer slump in sales coming early. Despite inflation numbers falling through the quarter and ongoing strength in the job market, consumers hesitated to upgrade their devices amid market uncertainty. We expect this trend to continue through Q3 2023, but the expectations from the upcoming iPhone 15 remain bullish.”

Despite the overall drop in shipments, certain segments of the US smartphone market saw important signs of life in the quarter.Senior Research AnalystMaurice Klaehnesaid, “In spite of declining smartphone shipments, the foldable market reached important milestones in the quarter.Motorolalaunched the Razr+, its first foldable device in the US since 2021, andGooglelaunched its first-ever foldable, the Pixel Fold, providing alternatives to the Samsung Galaxyfoldables. With new Galaxy Z Flip and Z Fold devices coming from Samsung in Q3 2023,foldable shipments could reach their highest level ever in the US in Q3 2023.

Associate Research Director Hanish Bhatianoted, “Despite fewer shipments from Apple compared to the same quarter last year, the brand’s share of shipments was still up 10% YoY. Apple’s resilience was driven by strong promotions across postpaid and prepaid. Verizon, AT&T and T-Mobile continued to offer $800+ promo credits for the iPhone 14 while old-generation iPhones were also steeply discounted across prepaid. We are seeing no weakness in the overall promotional activity. In fact, we observed new highs for trade-in credit with Verizon offering up to $1,100 for the Pixel Fold. Google’s Pixel also grew from a small base and launched its old-generationPixel 6ain the prepaid channel for the first time to compete with the iPhone 11. Both devices were heavily subsidized in prepaid channels.”

Director of North America Research Jeff Fieldhacksaid, “AT&T and T-Mobile reported positive net adds, but Verizon reported negative net adds within its consumer segment for the second consecutive quarter. The net-add activity remains comparable to last year, but the upgrade rates have been lower, causing overall weakness in demand. Near-record low churn has also had a dampening effect on new device sales. Weakness is likely to continue through the start of Q3 2023, but stronger iPhone 15 demand could offset weakness across Android.”

Background

市场研究是一个世界人口对位技术l research firm specializing in products in the technology, media and telecom (TMT) 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.

Analyst Contacts

Matthew Orf

Maurice Klaehne

Hanish Bhatia

Jeff Fieldhack

Follow Counterpoint Research

press(at)www.arena-ruc.com

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How Far Has Technology Come in 20 Years?

Source: Created with Stable Diffusion

Twenty years ago, I was an equity analyst for a Wall Street investment bank. At the time, my research director liked to get all the analysts to write occasional thought pieces. In the following article written in June 2003, I chose to write a speculative piece that looked back to 2003 from five years in the future, i.e. 2008. I speculated that there would be quite a few technological leaps in the five intervening years.

Given the 20 years that have now passed since I wrote the article, how many of those technologies have actually come into being? As you will see, not many, while others that were not foreseen have matured – for example, app-based smartphones and music streaming.

Without specifically naming it as artificial intelligence, I foresaw a role for cloud-based intelligent software agents that would provide intuitive assistance in multiple situations – a true digital assistant. These have not come into being and they are not even much discussed. We do have digital assistants such as Apple’s Siri, Google Assistant or Amazon’s Alexa, but they are mostly incapable of anything more than answering simple questions and certainly couldn’t be trusted to book travel tickets, make restaurant reservations or update other people’s diaries. WhileChatGPTand derivatives ofLarge Language Modelsseem superficially smarter, they are still not yet at the stage of being able to function as a general assistant.

One other technology referenced in the article that is still far from maturity, is augmented reality. The glasses described were not too far-fetched – Microsoft’s HoloLens can achieve some of what is described and Epson and Vuzix, for example, have developed glasses that are in use by field service engineers. But these products are not able to reference real-world objects.Apple’s forthcoming Vision Pro, while technically brilliant, would not be a suitable solution for the use case described.

At the end of the article, I listed companies that I expected to be playing a significant role in the development of the various technologies highlighted. But where are those companies now?

For context, and for the younger readers, around the turn of this century, third-generation cellular licenses had been expensively auctioned in several countries and many mobile operators were struggling to generate a return on their investment. Oh, how things have changed (or not)! As an analyst covering mobile technology, I could see that investors were valuing mobile operators solely on their voice and text revenues, with zero value being ascribed to future data revenues. My article was also an attempt to awaken investors to the potential value beyond voice.

Anyway, here’s the report that I wrote in mid-2003. It was written as though it were an article in a business newspaper.

Special Report – June 2008

Connected People

这是八年以来欧洲无线电话ecom companies became the subject of outright derision for spending billions of dollars on licenses to operate third-generation cellular networks. Now the self-same companies have become core to our everyday existence. Their stock, which bottomed in the middle of 2002, has risen steadily ever since.

The original promise of 3G technology was high-speed data networking coupled with an exceptional capacity for both voice and data. But critics said that it was an innovation users didn’t need, want or would be willing to pay for.

When the first commercial 3G networks appeared in 2003 and faltered at the first step, the doubters started to look dangerously like they had a point. But the universe is fickle and within the last two or three years, the combination of maturing networks and the inevitable power of Moore’s Law has started to deliver wireless devices and applications that would have been thought of, if not as science fiction, then at least science-stretching-the-bounds-of-credibility, when the licenses were issued.

However, while the long-time infamy of 3G means it is taking the starring role as industry watchers chart the chequered history of the technology, it is the supporting cast of technologies that has really delivered the goods. Without them, 3G would have remained just another method to access the backbone network.

The following snapshots from one perfectly ordinary day last month show how the coordinated application of a whole slew of technologies has subtly but distinctly altered our lives.

Bristol – May 1, 2008, 12:57 pm

Beads of sweat form on the face of Jim McKenna, a 24-year-old technician, as he studies the guts of a damaged generator. McKenna is a member of a rapid response team, looking after mission-critical power generation facilities across Southern England.

“Dave, I’ve located the damaged circuits, I think I can repair it, but the control unit is non-standard and I’ve not seen one like it before. Can you help me out here?”

McKenna’s voice is picked up by a tiny transducer microphone embedded in a Bluetooth-enabled hands-free earbud. The bud is so small it nestles unobtrusively in the technician’s ear. The earbud is wirelessly connected to the small transceiver on McKenna’s belt. His voice activates a ‘push’-to-talk connection to his controller in the Scottish technical support center. The word push is in quotes because it is his voice that effects the push, leaving McKenna’s hands entirely free.

In the Edinburgh-based command center, David Sanderson, an experienced engineer, maximizes the image from one of a half-dozen sub-screens that compete for his attention. Each screen shows live pictures from his team of technicians with data about their location and degree of job completion.

Sanderson taps the screen again and, 400 miles away in Bristol, a tiny camera on McKenna’s smart glasses zooms in on the generator specification plate. Sanderson peers intently at the screen:

“I see a code on the side panel. I’ve highlighted it for you. Can you scan it? I can then pull the circuit files for you”.

Seemingly in mid-air, a red circle appears around a barcode away to McKenna’s right. The heads-up display in McKenna’s glasses maintains a fix on the code even though he moves his head. He leans across and uses the camera to scan the code, which is instantaneously transmitted back to Edinburgh where the circuit plans are uploaded from the database. Sanderson extracts the relevant section before speaking again to McKenna.

“Jim, I’m initiating the synchronization, you should have it in a few seconds.”

The 3G transceiver on Jim’s belt receives the information and immediately routes it to his smart glasses via Bluetooth. As Jim looks at the damaged circuitry, the heads-up display begins to superimpose the circuit diagram over the actual circuits, adjusting for size. He spends a few minutes comparing the damaged circuits with the schematic images. He calls for more backup.

“Dave, the problem is definitely in this sector of the step-down circuit,” McKenna points to a series of circuit boards, “is there a suggested workaround in the troubleshooting file?”

Within minutes the heads-up display starts guiding McKenna through a series of measures that isolates and bypasses the damaged circuits. Within 20 minutes, McKenna successfully reboots the system – power is restored.

Five years ago, very little of the above could have been done as efficiently and intuitively. Field service engineers needed substantial experience to tackle complex tasks – they also had to carry heavy, often ruggedized PCs and a whole series of manuals on CD-ROMs. Technical backup, where available, was a cellular voice call.

Liverpool Street, London, May 1, 2008, 2:32 pm

Joanne King, an equity analyst, is meeting a buy-side client. As they settle into the soft leather chairs of the meeting room, she slides a flexible plastic sheet across the table. The sheet is printed with electronic ink. The latest marketing pack was downloaded to her mobile terminal on the way over in the taxi. She taps the screen of her smartphone and the slide set appears on the sheet. As Joanne and her client discuss the vagaries of the stock market, they are able to use virtual tabs to flip between ‘pages’ within the pack. When the client requests more information on the balance sheet of one of companies they’re discussing, Joanne is able to pull down the necessary information, adding it to the slide set.

Partway through the discussion, Joanne hears a subtle tone in her ear indicating an urgent communication request from her personal digital assistant. She apologizes to the client before initiating the communication path. “Wildfire, what’s the problem?” she knows that Wildfire will only override her no-interrupt rule if an issue requires immediate attention.

“An air traffic control strike in Paris has disrupted all flights. Your 6 pm Brussels flight is showing a two-hour delay and may be canceled. The best alternative is to take the Eurostar train. Services leave at 16:30 and 18:30.”

After a moment’s thought, Joanne comes to a decision: “Book the 16:30, please.” Conscious of the topics still to cover in her meeting, she adds, “Can you also have a taxi waiting when I am through here?”

Wildfire confirms the instructions and drops back into meeting mode. Joanne apologizes to the client and resumes her meeting. Meanwhile, Joanne’s software agent communicates with various travel services, canceling her flight reservation and booking the rail service.

Having learned from Joanne’s prior behavior, the agent books a First Class seat in a carriage toward the front of the train. The agent also communicates with a taxi firm – a car will be waiting when her meeting is completed. The agent is authorized to spend money within predefined limits. Simultaneously, the agent modifies Joanne’s expense report and calendar.

Joanne’s dinner date with friends in Brussels will be hard to keep given the change in travel plans. The agent negotiates with the diaries of her three dinner guests and the reservation computer at their chosen restaurant. A new reservation is agreed and four diaries are updated accordingly.

At the conclusion of her meeting, Joanne leaves the slide set contained in the pre-punched flexible display. Her client will be able to store it in standard folders and refer to it at leisure. Solar cells ensure that there is enough power to display the material without having to worry about battery charge.

As she heads for the taxi, Joanne’s location-aware PDA recognizes she is in motion and, therefore, ready to communicate. “Joanne, you have 2 voice messages, 23 business e-mails and 12 personal e-mails. How would you like me to handle them?” Joanne chooses to listen and respond to a voicemail on the short taxi ride to Waterloo, deferring the e-mails for the train.

Once in her seat on the Eurostar train, Joanne unfolds a screen and keyboard that work alongside her 3G smartphone. Bluetooth provides the link between the smartphone, screen and keyboard. The Light Emitting Polymer screen is extremely lightweight and flexible, yet delivers high contrast and color resolution. Power consumption is low.

Joanne spends an hour responding to the e-mails before kicking off her shoes and taking out an e-book to settle down to listen to some music. She is particularly looking forward to a new album she bought on the way to the station. A song she was unfamiliar with came over the radio in the taxi – loving it, but not knowing what it was, Joanne recorded a quick burst. Vodafone, her service provider, was able to identify the music and offered to sell her the single or album. In anticipation of her long train ride, she chose the album. Leaning back in her seat, she lets the cool beats ease her to Brussels.

In 2003, one-on-one presentations were either made from a PC screen or delivered on regular paper. Meeting interruptions were either obtrusive or impossible, and changing travel reservations on the fly typically required several people – often with intervention by the traveler herself. Meanwhile, mobile e-mail was possible but only on large-screen PCs, compromised by size, weight and power consumption, or devices with screens and keyboards too small for anything other than limited responses.

Hyde Park – May 1, 2:18 pm

Mike Lee is on his way home from high school. He flips his skateboard down three steps and dives for cover in the bushes, the sound of gunfire ringing in his ears. Peering through the leaves, he holds a small flat panel console in front of him. He scans through 120 degrees, concentrating on the screen. The intense rhythms of electro-house are now the loudest sounds he hears, but there is also the distant rap of gunfire. On the screen, he sees the surrounding park, but in addition, the occasional outlandish figure appears, flitting between hiding places among the trees. “Josh! Where are you?” Mike demands in an urgent whisper.

“I’m by the lake dude. Surrounded. Can you get down here? I’m running out of ammo.”

Mike swings around, looking toward the lake through his device. He sees Josh’s position highlighted on the screen. He turns back, takes a deep breath and starts jabbing buttons on his device. Explosions and smoke fill the screen. Then running to the path, he jumps back on his skateboard and carves down the hill to the lake, pitching into the shrubbery next to his buddy Josh. They proceed to engage the advancing enemy in a frenzy of laser grenades, gunfire and whoops of delight.

After a few minutes, they both hear the words they have been waiting for, “Well done men, you have completed Level 12. Hit the download button to move on to the next level.”

Mobile gaming, even as recently as 2003, offered a relatively poor user experience. Simple Java games were the norm. Games now not only involve online buddies but they are also immersed into the surrounding environment, massively enhancing the experience.

3G has come a long way from its ignominious start. However, the real catalyst that has made it a life-changing technology has been the incredible range of diverse technologies that have emerged to support the growth in wireless voice and data applications.

Cast List:

3G smartphones – Nokia, Motorola

Bluetooth earbuds – Sound ID

Heads-up display – Microvision

Voice-driven push-to-talk – Sonim

Voice control – Advanced Recognition Technologies

Personal digital assistant – Wildfire

Electronic ink pad – E Ink, Philips Electronics

Music capture – Shazam Entertainment

Foldable Light Emitting Polymer Display – Technology from Cambridge Display Technology

Augmented reality game console – Nokia N-Gage 4

Intelligent mobile agents – Hewlett Packard

Geo-location technology – Openwave

Where are these companies in 2023?

My original cast of technology characters has seen mixed fortunes, some are still around but with different owners while others have disappeared altogether. Few are still going in their original business niche:

NokiaandMotorolaare brands that are still making mobile devices, but in different guises than in 2003.

I don’t know what became ofSound ID. There is an app called SoundID created by Sonar Works, but it is different and unrelated to the Sound ID identified in the article. But Bluetooth True Wireless earbuds are now ahuge market.

Microvisionis still in business but has shifted its focus to LiDAR in the automotive space.

Sonimis still in business and still making ruggedized devices, including push-to-talk devices for the safety and security sectors.

Advanced Recognition Technologieswas acquired by Scansoft in 2005.

Wildfirewas an innovative voice-controlled personal assistant that was acquired by the operator Orange in 2000. But Orange killed the service in 2005.

E-Inkstill exists, although Philips parted ways with it in 2005.

Shazamstill exists but was acquired by Apple in 2018. When it started in 2002, you had to dial a short number and hold your phone to the sound source. Users would then receive an SMS with the song title and artist.

Cambridge Display Technologyis still around. It was floated on Nasdaq in 2004 and acquired by Sumitomo Chemical in 2007.

Hewlett Packardis clearly still around. However, it doesn’t make intelligent software agents. But then again, neither does anyone else, at least not in the way portrayed in the article.

Openwaveno longer exists, although many of its businesses have been absorbed into other entities.

Fast Charging Powers 80% of Global Smartphone Sales in Q1 2023, Averaging 34W

  • 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.
  • 中国智能手机品牌引领这一趋势的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.

Fast charging milestones in terms of wattage

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.

中国智能手机品牌引领这一趋势的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.

Fast charging smartphones average power wattage by brand

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

市场研究是一个世界人口对位技术l 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.

Analyst Contacts:

Karn Chauhan

Shubham Nimkar

Follow Counterpoint Research
press(at)www.arena-ruc.com

Related Posts

Saudi Arabia Smartphone Shipments Grow 26% YoY in Q1 2023, Buck Trend

  • 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.
  • Among OEMs, Samsung and Apple continued to take over 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 2022在宏观经济和地缘政治压力,分di 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 & 5G Share

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 consecutivequarter2023年一季度和2023年可能会进一步增长。

Competitive landscape

Saudi Arabia smartphone shipments Q1 2023 Saudi Arabia Smartphone Shipments by Top 5 OEMs for Q1 2021, Q1 2022, Q1 2023

Among OEMs, Samsung and Apple continued to take over 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:

  1. ASP & Priceband Analysis done using Wholesale Prices
  2. Xiaomi includes Redmi, Pocophone, Black Shark

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LATAM Smartphone Shipments Fall 9.9% YoY in Q1 2023, But Most Leading Brands’ Volume, Share Increase

  • 三星保持该地区的绝对领袖a 41.7% market share. It was also the leader in all the markets in the region.
  • OPPO’s volume grew 88% YoY, the highest growth among leading brands in the region.
  • Brazil, Mexico, and Chile suffered the biggest drop YoY.

Buenos Aires, San Diego, Denver, New Delhi, Hong Kong, Seoul, London, Beijing – May 11, 2023

LATAM smartphone shipments declined 9.9% YoY in Q1 2023 on weakconsumerdemand, according to Counterpoint Research’sMarket Monitorservice. After a bleak Q4 of 2022, things did not turn around during the first quarter of 2023. Traditionally, Q1 is one of the slowest quarter of the year as the southern hemisphere’s summer recess falls in this quarter. Theshipmentsusually start picking up in March in preparation for the Mother’s Day sales season in May. However, this year’s weak demand affected these shipments.

Commenting on the market dynamics,Principal Analyst Tina Lusaid, “High inflation, low economic growth, and some social unrest that continued from 2022 impacted consumer confidence in the region. 5Gsmartphonesfailed to attract consumers in big numbers to accelerate the rate of replacement. But still, the region’s 5G smartphone portfolio increased by more than 21% even as the share of 5G smartphones improved only a few points since December. It is still not clear whether theLATAMconsumer wants a 5G smartphone or buys it as it is the best option available.”

Top Smartphone OEMs’ Market Share in Latin America, Q1 2023 vs Q1 2022

LATAM smartphone shipments- Q1 2023

Source: Market Monitor

Commenting on the performance of OEMs in the region,Research Analyst Andres Silvasaid, “While thesmartphonemarket continued to decline, most leading brands managed to increase their share and even volume. With leadingbrandshaving better product availability and deeper pockets to run promotions, the smaller brands were pushed to an all-time low. However, the overall inventory situation continued to improve.”

Market Summary

  • Samsung’s volume and share in the region dropped YoY, impacted by thegeneralmarket decline. However, the brand’s share improved QoQ. During Q1 2022, Samsung started an aggressive volume shipments that continued till Q2 and resulted in high inventories that lasted until the end of 2022, impacting the brand’sshipmentsduring H2 2022. This year, Samsung was more cautious and did not build that massive amount of inventory.
  • The launch of refreshed A series allowed Samsung to remain as the region’s absolute leader with a 41.7% share, more than double the closest competitor’s.
  • The launch of the S23 series allowedSamsungto remain the value leader in the region. Samsung conducted an aggressive promotional campaign for the launch of the S23 series, and it was rewarded with better performance than last year’s S22 series. Brazil, Mexico, and Argentina were the markets driving this growth.
  • Xiaomialso gained volume and share. Its growth was driven by the launch of the A2 model in February and the Note 12 model in April (shipments of the model started in March). The brand also managed to partially resolve the issues being faced by it in Mexico.
  • Xiaomi is trying to push its premium models, but the response from end users has been lukewarm so far.
  • Apple’s volume and share also increased YoY. The iPhone 11, a 4G model, drove its growth in the region.
  • Apple has been aggressively driving sales by offering a memory upgrade in the iPhone 14 and some subsidies for many of its products.
  • OPPO continued to grow, with its share more than doubling YoY. Its volume grew 88% YoY, the highest growth among leading brands in the region. Entering the region three years ago,OPPOhas already consolidated its position among the top three in Mexico. It is now aiming to grow its share in Colombia and Peru.
  • OPPO is also set to increase its share in the premium segment by launching the Find N2 Flip in the region. It is the third OEM to launch a flip model in the region.
  • 从2022年中兴的数量继续下降。我s one of the brands affected by the regional decline.
  • The smaller and regional brands’ volumes continued to decrease. They have been squeezed by the big brands’ deep pockets and new entrants.

Feedback or a question for the analyst that wrote this note?

Tina Lu

Senior Analyst

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Background

市场研究是一个世界人口对位技术l research firm specializing in products in the technology, media, and telecom (TMT) 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.

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Global Smartphone Market Declines 14% YoY in Q1 2023; Apple Records Highest-Ever Q1 Share

  • 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.

Quarterly global smartphone market
Source: Counterpoint Research Market Monitor Preliminary Data, Q1 2023
注意:朋友包括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.

Major handset vendor's shipment
Source: Counterpoint Research Market Monitor Preliminary Data, Q1 2023
注意:朋友包括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愿意,这也是吸引用户pend 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

市场研究是一个世界人口对位技术l 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.

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Feel free to reach us at press@www.arena-ruc.com for questions regarding our latest research and insights.

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Harmeet Singh Walia

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MWC 2023 Day 1: HONOR Magic5 Series Launch, OnePlus 11 Concept, and more

Day 1 of the annual MWC Barcelona is the busiest as the show floor opens to thousands of attendees and brands participating in one of the world’s biggest tech fairs. Yesterdaywe covered the pre-show announcementsthat took place atMWC 2023. Today, smartphone brands likeOnePlus,HONOR, andXiaomishowcased their concepts and new products. Below is a quick summary of the announcements:

OnePlus 11 concept smartphone, 45W Liquid Cooler, XR partnerships, and more

After globally launching theOnePlus 11 earlier this month, OnePlus展示了用不一个概念的智能手机w active cooling technology called Active CryoFlux. The new cooling technology will lower smartphone temperatures by up to 2.1°C, improving a game’s frame rate by 3-4fps, or by 1.6°C during charging, which slightly improves charging times. This is achieved through an industrial-grade piezoelectric ceramic micropump that runs cooling liquid through micropipes in the smartphone without significantly increasing the OnePlus 11 Concept’s weight or thickness.

counterpoint mwc 23 day 1 oneplus 11 concept phone

A new OnePlus 45W Liquid Cooler was also showcased. It is a semiconductor-based thermoelectric cooler that reduces the temperature of a device by up to 20°C. Of note, OnePlus and its industry partners also presented the OnePlus 11 5G’s XR experience possibilities through ray tracing technology powered by Qualcomm’s Snapdragon 8 Gen 2 Mobile Platform, and a Snapdragon XR2 AR Wireless Smart Viewer experience. The OnePlus 11 5G is the first Snapdragon Spaces-ready smartphone for the Snapdragon Spaces XR developer program.

HONOR Magic5 series, Magic Vs foldable launch

HONORtook the stage to announce the global launch of its premium line-up – Magic5 Pro and Magic5 – as part of the brand’s dual-flagship line-up strategy catering to two different segments. The HONOR Magic5 Pro is available in one configuration – 12GB RAM and 512GB – and will sell for €1,200, whereas the HONOR Magic5 8GB RAM with 256GB storage will be available for €900. Both devices are powered byQualcomm’s Snapdragon 8 Gen 2 SoC, support 66W wired charging and feature a “falcon camera” system, which uses AI to select the best shot for a moving object.

counterpoint mwc 2023 day 1 honor magic5 pro magic vs announcement

HONOR also launched its first foldable device outside China – Magic Vs. This is also the first book-type foldable phone other than Samsung launched outside China. The hinge comprises only four pieces of material, compared to 92 pieces in a typical competitor offering. The folding smartphone is powered by the Snapdragon 8+ Gen 1 SoC.

Foldables have become an established niche with cumulative shipments crossing the 20-million mark in 2022. At €1,599 ($1,693), the HONOR Magic Vs undercuts Samsung’s Galaxy Z Fold 4 which costs €1,800. HONOR is competing directly with Samsung here. The competition in the foldable segment will intensify in 2023.

Xiaomi Wireless AR Glass showcased

After launching the 13 series smartphones along with a bunch ofIoTproducts,Xiaomialso showcased the Wireless AR Glass Discovery Edition at MWC. These are standaloneARglasses that can be wirelessly paired with your smartphone or other compatible devices for immersive AR experiences.

counterpoint mwc 2023 day 1 xiaomi ar glasses discovery edition

There are two MicroOLED screens with a peak brightness of up to 1200 nits per eye. The electrochromic lenses come with an immersive mode for complete immersion in the virtual space. Then, there is also a transparent mode, allowing users to see the objects in their surroundings. Xiaomi has also added three cameras to map out the surrounding world around the user. These AR glasses are powered byQualcomm’s Snapdragon XR2 Gen 1platform and support the Snapdragon Spaces XR developer platform. To offer precise controls and operation, Xiaomi has also developed its own AR gesture controls with spatial detection.

Lenovo, Motorola showcase rollable display devices

Foldable smartphones are becoming a little common today as they offer both compact and big-screen experiences in one device. But foldables aren’t the only way to get a big-screen experience. Smartphone brands are also experimenting with rollable displays.OPPOshowcased its rollable smartphone last year, and this yearMotorolahas showcased the working prototype of its rollable device called Moto Rizr.

counterpoint mwc 2023 day 1 motorola Moto rizr rollable smartphone
Credit – Lenovo

TheAndroidprototype comes with a 5-inch, 15:9 aspect-ratio display that can roll up to offer a 6.5-inch, 22:9 aspect-ratio screen. Though the smartphone seems to be operational, the company has not mentioned anything about its intention of putting this prototype into production anytime soon.Lenovoalso offered a sneak peek at a proof-of-concept laptop featuring a rollable screen that goes from 12.7 inches (4:3 aspect ratio) to 15.3 inches (8:9 aspect ratio).

counterpoint mwc 2023 day 1 lenovo rollable laptop
Credit – Lenovo

我s good to see OEMs trying out different form factors, but it will take a while before this tech becomes mainstream. How companies will address the durability and software challenges will be something to look forward to.

BeUno implants, more than health trackers

A company called Dsruptive is offering BeUno ‘implants’ that are claimed to deliver a better user experience in the health and medical industry as compared to the wearables. These capsule-like implants (or sensors) are placed inside the body to monitor body temperature, remotely monitor patients and provide personalized treatment. The solution, which has been clinically tested, gets activated via NFC and does not need any battery to operate.

counterpoint mwc 2023 day 1 beuno

There are other use cases beyond healthcare, like unlocking doors by using the implants as an electronic ticket (already started in Sweden), and using them for bio-payments. While all this seems promising, there will be some key challenges for the technology, such as mass adoption due to regulatory issues, customer acceptance, and any health-related implications due to the implants.

With inputs fromMaurice Klaehne,Varun Mishra,andAnshika Jain
This is a developing post…

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2022 Global Smartphone Shipments Lowest Since 2013; Apple Regained No. 1 Rank with Highest-Ever Operating Profit Share of 85%

  • 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.

Related Posts

Background

市场研究是一个世界人口对位技术l 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.

Feel free to reach us at press@www.arena-ruc.com for questions regarding our latest research and insights.

Analyst Contacts

Harmeet Singh Walia

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Tarun Pathak

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Jan Stryjak

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