Counterpoint Quarterly: Q2 2023

Counterpoint Quarterly

IoT Q2 2023

Published Date: 16th August 2023

Overview:This insightful report covers key trends in Smart Home Security Cameras, Cellular IoT Connections, AI-driven transformations, revenue dynamics, and emerging technologies. It offers concise, valuable insights for informed decision-making across diverse industries.

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Table of contents:

Global Cellular IoT Connections to Cross 6 Billion in 2030
AI & API Accelerating Digital Transformation Across Verticals
Netgear Q1 2023: Revenue Stutters as Inventory Correction Set to Spill Into Q2
India’s Smart Home Security Camera Shipments Up 48% YoY in Q1 2023

Global Connected Agriculture Node Shipments to Reach 187 Million Units by 2030
Global Connected Construction Machine Shipments Grew 6.7% YoY in 2022
PAX Revenues Cross $1 Billion in 2022; SmartPOS Adoption Supports Growth

Automotive Q2 2023

Published Date: 8th August 2023

Overview:这个综合分析涵盖全球电动汽车的趋势s, connected car sales, regional market dynamics, key players, emerging technologies, pricing strategies, and market growth. It also provides concise, insightful automotive trends for informed decision-making.

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Table of contents:

China EV Sales Defy Subsidy Cuts, Maintain Strong Growth in Q1 2023
AI Needs to Reside in the Vehicle to Work Well
US EV Sales Up 79% YoY in Q1 2023 Helped by Tax Credit Subsidy
Global Passenger Electric Vehicle Market Share, Q2 2021 – Q1 2023
Global EV Sales Up 32% YoY in Q1 2023 Driven by Price War

Google Puts Auto Expansion in Top Gear
华为的广告2.0:一个有前途的新ADAS市场
Connected Car Sales Grew 12% YoY in 2022 With Volkswagen Group in Lead
Price Cuts Boost Tesla Revenue in Q1, Profit Slumps Compared to 2022
EV Sales in US up 54.5% YoY in 2022; Tesla Market Share at 50.5%

Wearables Q2 2032

Published Date: 24th July 2023

Overview:This is a comprehensive analysis of the latest developments in the wearables industry covering product reviews, market trends, and regional insights. It also includes the Sony WH-CH720N headphones, Apple’s Vision Pro, Meta’s Quest 3, smartwatch markets in China and India, MediaTek’s expansion, AR/VR value chain in China, Apple’s device ecosystem, and wearable innovations at MWC Barcelona 2023.

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Table of contents:

Sony WH-CH720N Review: Good Sound, Effective ANC, Long Battery Life
Vision Pro, iOS 17, New Macs: Here’s Everything Announced at Apple WWDC 2023
Apple Thinking About the Next Decade & Beyond with Vision Pro Announcement
Quest 3 to Help Maintain Meta’s XR Dominance Even as Apple Entry Looms
China’s Q1 2023 Smartwatch Shipments Drop to Lowest in 12 Quarters
India Smartwatch Market’s 121% YoY Growth Restricts Global Decline to 1.5% in Q1 2023

Global Outsourced Manufacturing Smartwatch Shipments Rose 15% YoY in H2 2022
MediaTek Analyst Summit: Focus on Widening Portfolio, Growth in US and Europe
Analysis of the AR/VR Value Chain in China: Is China at the forefront of the industry?
Apple’s Device Ecosystem Multiplies its Brand Strength and Stickiness
Wearable Innovations Stand out at MWC Barcelona, 2023

Semiconductors Q2 2023

Published Date: 24th July 2023

Overview:This is a comprehensive analysis of the industry, encompassing topics like international policies affecting self-reliance plans, regulatory acts in the US, earnings of major players, semiconductor manufacturing in India, emerging technologies in the market, and key events shaping the industry’s future. It provides valuable insights for stakeholders seeking a concise overview of the semiconductor landscape.

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Exhaustive table of contents below:

Will Japan Curbs Hit China Semiconductor Self-reliance Plans?
Will CHIPS Act Achieve US Goals?
UMC Q1 2023 Earnings: Weak Cyclical Recovery But 28nm Remains Resilient
STMicro Beats Q1 2023 Earnings Expectations Despite Chip Shortages
印度的前景的半导体制造Trajectory
New Layer-1 Accelerator Cards Set To Boost Open RAN Market – Or Create More Lock-In?

MediaTek Analyst Summit: Focus on Widening Portfolio, Growth in US and Europe
Neil Shah Joins as Vice-Chairman for IC 50 Committee
Arm Platform TCS23 Sets Benchmark to Power Advanced, Holistic Mobile Computing Experiences
BoM Analysis: Samsung Galaxy S23 Ultra Costs $469 to Make
COMPUTEX 2023: AI Solutions, Capabilities in Focus
Currency Fluctuation Limits Global Wafer Fab Equipment Revenue Growth to 9% YoY in 2022

Note: The report comprises of carefully selected aggregated insights published by our analysts during Q2 2023. The data presented herein corresponds to the Q1 2023.

Smartphones Q2 2023

Published Date: 12th July 2023

Overview:This report provides a comprehensive analysis of the global smartphone market, covering various topics and regions gathered throughout Q2. It includes insights into consumer preferences, market trends, and key players. The report offers a broad perspective on the industry, exploring topics such as foldable smartphones, market strategies, display technologies, reviews of smartphone models and much more. This report serves as a valuable resource for industry stakeholders seeking a concise overview of the global smartphone market.

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Exhaustive table of contents below:

Survey: 28% of US Smartphone Users Highly Likely to Opt for a Foldable as Next Purchase
OPPO’s LATAM Strategy is a Success So Far But Challenges Ahead
China Premium Smartphone Market Outlook: Bright Future Ahead
Smartphone Displays Moving Towards ‘Brighter’ Future
OPPO Find X6 Pro Review: A Photographer’s Delight
Refurbished iPhone Volumes Grew 16% YoY Globally in 2022
China Smartphone Sales Fall 5% YoY in Q1 2023; Apple on Top With Highest Sales Share
India Smartphone Market Records Highest Ever Q1 Decline of 19%, 5G Smartphones Contribution at 43%
Global Smartphone Market Declines 14% YoY in Q1 2023; Apple Records Highest-Ever Q1 Share
Survey: 72% of Smartphone Users in India Experience Low-battery Anxiety
US Smartphone Shipments Decline in Q1 2023 Amid High Inflation, Inventory Correction; Apple Share Up
Europe Smartphone Shipments Dropped 23% YoY in Q1 2023; Market at Lowest Levels for Over a Decade
MEA Smartphone Shipments Fall to Lowest Q1 Level Since 2016

LATAM Smartphone Shipments Fall 9.9% YoY in Q1 2023, But Most Leading Brands’ Volume, Share Increase
Apple Shines in a Declining Southeast Asia Smartphone Market
Transsion Updates – Full Year 2022
Festive Season Restricts Decline in Indonesia Smartphone Shipments to 8.1% YoY in Q1 2023
Colombia’s Q1 2023 Smartphone Shipments Hit Three-year Low
Vietnam’s Smartphone Market Drops 30% in Q1 2023, Biggest Q1 Decline Ever
Philippines Smartphone Shipments Fall 9% YoY in Q1 2023; realme Leads
Strategy Trumps Sentiment as OEMs Skip Canada for New Feature Launches
Apple Thinking About the Next Decade & Beyond with Vision Pro Announcement
HONOR Bucks Market Trend With Fast Overseas Expansion
Share of OLED Smartphones at Record High
China’s <$150 Smartphone Market Posts Surprising Surge in Q1 2023
Ecuador Smartphone Shipments Up 18% YoY in Q1 2023; Xiaomi Takes Top Spot

Note: The report comprises of carefully selected aggregated insights published by our analysts during Q2 2023. The data presented herein corresponds to the Q1 2023.

Indonesia’s Q2 2023 Smartphone Shipments Drop 10%; OPPO Recaptures Top Spot

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’ssmartphoneshipments 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.

5Gsmartphone 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

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

Febriman Abdillah

Follow Counterpoint Research

press(at)www.arena-ruc.com

Philippines Smartphone Shipments Decline 20% YoY in Q2 2023; Xiaomi Rises to Third Spot

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.

雅加达、香港、伦敦、波士顿、多伦多、新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

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

Glen Cardoza

Follow Counterpoint Research

press(at)www.arena-ruc.com

India Premium Smartphone Segment Grows 112% YoY in Q2 2023; India Now Among Apple’s Top 5 Markets

India’s premium smartphone segment now contributes a record 17% to its overall shipments.
With an 18% share, Samsung led India’s smartphone market for the third consecutive quarter.
Samsung also surpassed Apple to become the top premium segment (>INR 30,000 or ~ $366) brand.
Apple continued to lead the ultra-premium segment (>INR 45,000 or ~$549) with a 59% share.
vivo maintained its second position. It was the only brand among the top five to experience YoY growth.
OnePlus was the fastest-growing brand in India’s smartphone market in Q2 with 68% YoY growth.

新德里,香港、首尔、伦敦、北京、圣Diego, Buenos Aires – July 28, 2023

India’s smartphone shipmentsdeclined 3% YoYin Q2 2023 (April-June), according to the latest research from Counterpoint’sMonthly India Smartphone Tracker. Though this decline was the fourth consecutive quarterly decline, its magnitude reduced significantly, from19% in Q1to 3% in Q2. Base effect, pent-up demand and improving macroeconomic conditions helped the market close at less than the expected decline. However, the premium smartphone segment presented a different picture, growing 112% YoY in Q2 to contribute a record 17% to the overall shipments.

Commenting on the market dynamics,Senior Research AnalystShilpi Jainsaid, “In Q2 2023, OEMs saw improvement in the inventory and demand situation ahead of the coming festive season. Aggressive measures were implemented by OEMs as well as channels during the quarter to clear existing inventory through multiple sales and promotions. At the consumers’ end, falling inflation and better growth prospects facilitated demand recovery.5Gupgrades also played a major role as OEMs kept launching 5G devices in the INR 10,000-INR 15,000 (~$122-$244) segment for a wider reach. We believe brands will be coming up with interesting launches and offers to lure consumers during the festive season and 5G will be a big growth driver here.”

Source: Counterpoint Research Market Monitor

Notes: Xiaomi includes POCO; OPPO excludes OnePlus; vivo includes iQOO; Figures not exact due to rounding

Commenting on the competitive landscape and brand-level analysis,Research Analyst Shubham Singhsaid, “Samsungremained at the top position for the third consecutive quarter with an 18% market share. The brand also surpassed Apple to regain its top position in the premium smartphone segment (>INR 30,000, ~$366) after one year with a 34% share. Aggressive offers on theZ Flip3and S21 FE, Samsung Finance+ and high demand for the latest premium A-series and F-series devices drove this growth. However,Applecontinued to lead the ultra-premium segment (>INR 45,000 or ~$549) with a 59% share. India is now among Apple’s top-five markets.”

“vivo maintained its second spot in the overall market and was the only brand among the top five to experience YoY growth. Strong offline presence, growth of sub-brand iQOO in online, and multiple launches across price tiers facilitated this growth. OPPOhas been consistently expanding its shipments in the higher-tier segments, with a particular focus on the upper mid-tier range (INR 20,000-INR 30,000 or ~$244-$366), showcasing its strategy to cater to diverse consumer needs. OPPO emerged as the top brand in this segment with a 21% market share.OnePluswas the fastest growing brand in India’s smartphone market in Q2 with 68% YoY growth.”

Other key insights

5G smartphone growth: In Q2 2023, 5G smartphone shipments in India crossed the 100-million cumulative mark as 5G upgrades picked up pace driven by the expansion of 5G networks and availability of affordable devices. 5G smartphone shipments grew 59% YoY during the quarter.
Premiumization trend: premiumization趋势上涨的势头segment grew at a faster rate of 112% YoY. Rise of a value-based incentive system for retailers, aggressive promotions, availability of credit through various financing schemes, and OEMs’ focussed approach are driving premiumization in India.
Channel dynamics: Offline channel share has been growing and is expected to rise to 54% in 2023. Online-heavy brands like Xiaomi, realme and OnePlus are now emphasizing offline expansion to enhance customer engagement and ecosystem development. Samsung and Apple are also increasing their offline presence to cater to diverse consumer preferences. This shift reflects a more comprehensive approach, leveraging both online and offline channels to create a seamless and personalized customer experience.
4G feature phone growth: 4G feature phone share in the overall feature phone shipments increased to 10% in Q2 2023 driven by the JioBharat and itel Guru series’ launch. We believe this share will increase to 18% by the end of 2023. Growing demand for UPI, multiple launches from OEMs and Reliance push will help the segment grow further.
Inventory levels: The market was able to exit Q2 2023 with eight weeks of inventory as Xiaomi and realme managed to clear most of their inventory through multiple sales and promotions.
Other notable brandswhich grew during Q2 2023 were Apple (56% YoY), Transsion (34%), Lava (53% YoY) and Nokia (6% YoY).

The comprehensive and in-depth ‘Q2 2023 Market Monitor’is available for subscribing clients.

Feel free to contact us atpress@www.arena-ruc.comfor questions regarding our latest research and insights.

The Market Monitor research relies on sell-in (shipments) estimates based on vendors’ IR results and vendor polling, triangulated with sell-through (sales), supply chain checks and secondary research.

You can alsovisit our Data Section(updated quarterly) to view the smartphone market shares forWorld,US,ChinaandIndia.

Background

Analyst Contacts

Shilpi Jain

Shubham Nimkar

Tarun Pathak

Follow Counterpoint Research

China Sees Lowest Q2 Smartphone Sales Since 2014; vivo, OPPO, Apple Lead

Smartphone sales in China fell 4% YoY in Q2 2023. The sales continued to decline in April and May, while the 618 e-commerce festival provided a boost in June.
Among OEMs, vivo reclaimed its leadership position with a 17.7% market share. OPPO (including OnePlus) and Apple were in a tie in Q2, each capturing 17.2%.
Apple, Huawei and realme managed to achieve positive YoY growth. Huawei’s smartphone sales grew 58% YoY driven by a bigger product portfolio.
Apple’s sales increased 7% YoY as its position in the premium segment remained unchallenged.

Beijing, New Delhi,Hong Kong, London,San Diego, Buenos Aires, Seoul – July 28, 2023

China’s smartphonesales fell 4% YoY in Q2 2023, reaching the lowest Q2 sales figure since 2014, according to Counterpoint’sMarket Pulse Service.Themacro headwinds, both internal and external, took a toll on Chinese consumer sentiment.

In April and May, smartphone sales remained weak, while the 618 e-commerce festival provided a boost in June, resulting in a 25% MoM growth. However, despite the sequential increase in June, the relatively weak performance observed during the618 sales period(June 1 to June 18), with an 8% YoY decline according to Counterpoint’s618 Sales Period Thematic Report, ultimately led to a 6% YoY decline for the full month of June.

Source: Counterpoint Market Pulse Service Notes: OPPO includes OnePlus; Xiaomi includes Redmi; vivo includes iQOO; Figures may not add up to 100% due to rounding

AmongOEMs, Apple, Huawei and realme managed to achieve positive YoY growth.Applemaintained excellent sales performance with 7% YoY growth as its position in the premium segment remained unchallenged. The premium segment has proven to be more resilient during economic headwinds. Even within Apple, the sales share of the more premium Pro models grew from around one-third in Q2 2022 to around half in Q2 2023.

Sales of OEMs excluding Apple dropped 5.5% YoY, with all major Android OEMs except Huawei and realme seeing YoY declines. In terms of market share,vivoreclaimed its leadership position with a 17.7% share driven by a strong performance of the Y35 series, Y8 series and the newly launched S17 series.OPPO(including OnePlus) andApplewere in a tie in Q2, each capturing a 17.2% share.

Notably,OnePlusmanaged to maintain its strong growth momentum from Q1 2023 and achieved YoY growth of 254% in Q2 on the back of channel support from OPPO. On the other hand, OnePlus played an important role in compensating for OPPO’s limited online presence by using its online-centric business model to effectively tap into the segment.

Huawei’s smartphone sales grew 58% YoY in Q2 2023 as the brand managed to resume normal product launches this year. Leveraging its well-established brand image and strong offline footprint, especially in top-tier cities, Huawei witnessed a surge in sales after resolving its product shortages.

HONORandXiaomisaw their market shares drop in Q2 2023 on escalating competition. But HONOR has been catching up in offline presence in China.

With a disappointing performance in H1 2023, we have revised downwards our 2023 forecast for China’s smartphone market – from flat growth to a low single-digit YoY decrease. While we anticipate an improvement in smartphone sales during H2 when compared to H1, a strong rebound does not seem to be on the horizon as challenges that affected the performance in H1 are likely to persist.

Background

Analyst Contacts

Shenghao Bai

Alicia Gong

Counterpoint Research

Follow Counterpoint Research

press(at)www.arena-ruc.com

White Paper: Foldable Smartphones Set to Take on New Heights

Overview:

The global smartphone market is shifting its focus towards the premium segment, which offers higher profitability and resilience to economic downturns. In 2022, despite the overall decline in global smartphone sales, the premium market saw growth, with foldable smartphones capturing an increasing proportion of this market. It is projected that global foldable smartphone shipments will grow at a six-year CAGR of 114% from 2019 to 2025.

Chinese smartphone OEMs have played a significant role in driving growth in the foldable segment. With a mature supply ecosystem, strong partnerships with Chinese internet companies and aggressive product offerings, China has risen to be the world’s largest market for foldable smartphones, capturing a 26% share in 2022. We expect that Chinese smartphone OEMs will continue their success in the home market and further gain market share through overseas expansion.

Foldable smartphones have evolved through several generations since their introduction in 2019. Transitioning from the exploratory phase of the first generation, the focus shifted to the second generation with the aim of enhancing the practicality of foldable devices for everyday use. The current foldable models have seen huge improvements that can challenge flat-screen flagship models. We expect the next generation of foldable phones to surpass traditional flagships in overall performance and offer users an unprecedented experience.

Overall, the foldable market is poised for further growth due to technological advancements, declining prices, and the expanding presence of Chinese OEMs in overseas markets. This segment represents a key area of opportunity within the broader global smartphone industry.

Table of Contents:

Introduction
Section 1: Foldable Smartphone Segment Expansion Globally
Section 2: Success of Chinese OEMs in Foldable Smartphone Market
Section 3: Foldable Smartphone Generations
Conclusion

Authors:

Mengmeng Zhang

Senior Analyst

Flora Tang

Senior Analyst

Shenghao Bai

Senior Analyst

Download the full white paper using the form below

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.
Chinese smartphone brands are leading this trend by introducing higher-wattage charging across different price points.

London, San Diego, New Delhi, Beijing, Buenos Aires, Seoul, Hong Kong – July 20, 2023

Sales of fast charging-capable (>10 watts) smartphones accounted for almost 80% of the global smartphone market in Q1 2023, compared to 74% in Q1 2022 and 29% in Q1 2018, according toCounterpoint Research’s Global Quarterly Smartphone Fast Charging Report. The increasing adoption of fast charging-capable smartphones is attributed to growing smartphone usage and continuous advancements in hardware.

Need for fast charging

Nearly half of all smartphone users spend at least five hours a day on their devices.
They use the smartphone to stay connected with friends and family, browse the internet, stream content, and play games.
Besides, advances in smartphone technology, such as the widespread adoption of 5G connectivity and improvements in cameras, displays and processors, have increased the smartphone’s power requirement while enhancing the overall user experience.

These factors have, in turn, led to the demand for smartphones that can be charged faster to ensure uninterrupted usage for at least a full day. As a result, smartphone brands have recognized the importance of fast-charging capabilities and started to embed them in their portfolios.

Fast charging differentiating feature for smartphone brands

Chinese brands are leveraging fast charging as a selling pointto attract consumers. For instance, realme and Xiaomi offer smartphones with power capabilities exceeding 200W. Furthermore, Xiaomi andOPPO recently showcased smartphoneswith an impressive 300W fast charging capability. These brands aim to provide extremely fast charging speeds, enabling users to charge their phones within a few minutes.

Smartphone brands are focusing on making the fast-charging technology affordable. Smartphone brands are embedding fast charging into their lower-priced models as a differentiating factor. While fast charging has already become a standard feature in the >$200 price segment,smartphone brands are now focusingon providing higher-power charging in this segment to achieve the fastest charging speeds. In Q1 2023, the average power for fast-charging smartphones globally reached 34W, compared to 30W in Q1 2022 and 18W in Q1 2018. Smartphones capable of delivering more than 30W can fully charge a completely drained phone in approximately an hour. Charging a smartphone within an hour can be a compelling selling point for smartphone brands.

Chinese smartphone brands are leading this trend by also introducing higher-wattage charging across different price points, especially in the Chinese market where the average power is 50W. On the other hand, brands likeAppleandSamsunghave focused more on prioritizing battery safety and overall performance over pushing for higher-power chargers.

A few years ago, it was common for smartphones to require hours to charge. But now it has become thenorm for recharging to be accomplished in an hour or less, with the fastest achieving a full charge from empty in a few minutes. However, the race to provide faster charging has reached a point of diminishing returns and we expect a shift in emphasis toward other areas of technology in the smartphone in coming years.

Background

Analyst Contacts:

Karn Chauhan

Shubham Nimkar

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

Global Smartphone Market Declines for Eighth Straight Quarter; Premium Segment Growth a Silver Lining

Global smartphones sell-through declined 8% YoY and 5% QoQ in Q2 2023.
Samsung led the quarter with healthy A-series demand as Xiaomi and vivo faced headwinds.
Apple came in second with its share growing to 17% despite unfavorable seasonal factors.
Premium segment demand remained resilient, with the segment’s share reaching a Q2 record.

The global smartphone market’s sell-through declined 8% YoY and 5% QoQ in Q2 2023, according to the latest research from Counterpoint’sMarket Pulseservice. This was the eighth consecutive quarter to see a YoY decline.

Samsungled the market with a 22% market share, benefitting from the strong performance of its Galaxy A-series globally.Applecame in second while recording its highest-ever Q2 market share.Xiaomi, the third-largest brand, faced headwinds in its biggest markets – China and India. The brand is looking to offset such declines with expansion in other markets and by refreshing its portfolio.OPPOdid relatively well in its home market China and India (thanks toOnePlus),管理其全球市场t share despite registering losses in Western Europe.vivo(includingiQOO) saw major growth declines in China after a strong Q2 last year as well as strong competition from Samsung, and OPPO in the offline markets of India andSoutheast Asia.

The global smartphone market now seems to be well past its rapid growth phase, with consumer replacement cycles getting longer, convergence in device innovation, and the emergence of a more maturerefurbished marketfor smartphones hitting particularly the higher-volume low-to-mid-tier price segment demand.

Thepremium segment($600+ wholesale price), however, continues to grow immune to broader constraints, as the mature consumer is opting for a superior experience, supported by the easy availability of finance options across key geographies. The premium segment was the only segment that grew during the quarter, reaching its highest-ever Q2 contribution to the overall market. More than one out of five smartphones sold during the quarter belonged to the premium segment.

Apple is riding this “premiumization” wave, reaching record shares in multiple new markets which are typically not considered its core markets. A prime example isIndia, where it grew 50% YoY in Q2 2023. The continued strong performance of the premium segment has made sure that revenues don’t suffer as much as sales volumes, which is why brands are investing in market expansion andinnovationin newer technologies.

All regions worldwide saw a contraction in sales, but the biggest decline was seen in relatively more developed markets such as theUS, Western Europe andJapan, all of which recorded double-digit annual declines. The markets in China, India andMiddle East & Africa declined relatively less. OEMs and channels looked to clear the excess inventory built up in the market by leveraging promotions and “big sale” festivals. For example, the postpaid carriers in the US rejigged their unlimited bundled plans to offer more flexibility to consumers. But the demand remained weak amid higher interest rates impacting the disposable income of American households. In China too, the premier sales event of“618”, which is spread over several weeks, saw lukewarm reception despite aggressive promotions. However, the event was able to arrest the decline in the smartphone market in China and, indirectly, globally in June.

However, it is not all gloom and doom for the smartphone industry. According to ourSmartphone Inventory Tracker, the global smartphone inventory (sell-in vs sell-through) has been reaching healthy levels over the past four to five months, allowing OEMs some breathing room to launch and push newer models in the second half and attract consumers to upgrade, and accelerate the replacement cycle.

We expect the market to recover slowly in the coming quarters.

Background

Analyst Contacts

Ankit Malhotra

Tarun Pathak

Varun Mishra

Neil Shah

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Global Foldable Smartphone Market Continues to Expand, Underpinned by China

In Q1 2023, global foldable shipments grew 64% YoY to 2.5 million units.
China’s overall smartphone market fell in Q1 2023 but the domestic foldable market rose.
OPPO, Samsung grew rapidly in the Chinese foldable market.
Apple is likely to enter the foldable smartphone market in 2025.

Beijing, Hong Kong, Seoul, New Delhi, London, San Diego, Buenos Aires – July 7, 2023

According to theCounterpoint Research Foldable TrackerandFoldable Insight Report, the global foldable smartphone market increased 64% YoY in Q1 2023, based on sell-in volume, to reach 2.5 million units. This is quite significant because the foldable market rose amid a 14.2% year-on-year decline in the overall global smartphone market during the same period. Foldable smartphone markets in almost all major regions, including China, North America and Western Europe, displayed strong growth in Q1 2023.

Global Foldable Market YoY Growth Rate by Major Region, Q1 2023

The robust growth in the global foldable market was largely driven by the growth in the Chinese foldable market. Although the Chinese smartphone market declined by about 8% YoY in Q1 2023, the domestic foldable market continued to grow, surging 117% YoY to 1.08 million units. Commenting on this phenomenon,Research Analyst Woojin Sonsaid, “In China, new foldable products such as the OPPO N2 and N2 Flip had grand releases. These big launch events constantly pique the market’s interest. Consequently, Chinese consumers have become more familiar with foldable products compared to other regions.”

China Foldable Market Share by OEM, Q1 2023 YoY

OPPO’s strong Q1 2023 performance is noteworthy as it reflects the brand’s success in the Chinese foldable market, which is emerging as the world’s largest foldable smartphone market. OPPO ranked second in the Chinese foldable market with a slight gap with leader Huawei, helped by the N2 Flip and N2 which were released at the end of 2022. In particular, the N2 Flip, OPPO’s clamshell-type foldable, contributed a lot to the increase in the sales of clamshell-type products in China, beating Huawei’s Pocket S. Samsung’s growth in the China foldable market is also noteworthy. Samsung made efforts to target the Chinese market by launching the W23 and W23 Flip, which are variants of the Z Fold 4 and Z Flip 4, respectively, produced mainly for the Chinese market and MEA market. This helped Samsung grow rapidly in the Chinese foldable market in Q1 2023. Commenting on the foldable smartphone market outlook for 2023,Senior Analyst Jene Parksaid, “We believe that, in 2023, there will be 1) intensifying competition among OEMs in the global foldable market due to more aggressive target market expansion; 2) intensifying price competition; and 3) increasing sales volume of clamshell-type foldable smartphones through various product launches. Also, the Chinese foldable market is expected to continue to grow through 2023 mainly due to the Chinese consumers’ recognition of ‘foldables’ as a premium smartphone, coupled with continuous and frequent new product launches in the country.” Addressing the big question around Apple’s entry into the foldable market,Parksaid, “Apple is still absent from our short-term forecasts. However, since overall consumer response to foldable phones is improving and Apple will be possibly releasing non-phone foldable products soon, the brand’s participation in the foldable smartphone market is likely to occur after 2025.”

中国智能手机销量下降了8%,环比大调的ing 618 Period in 2023

Weak customer demand amid economic headwinds hit smartphone sales during the 618 period this year (June 1-June 18).
vivo took the biggest market share during the sales period while Huawei experienced significant growth.
Online-centric Xiaomi increased most sequentially this year. It offered bigger discounts on select high-memory products.
Our forecast for China’s smartphone market has been revised downwards to reflect the latest developments.

China’s smartphone salesfell 8% YoY during the 618 sales period in 2023 (June 1-June 18), indicating weak customer demand for smartphones amid economic headwinds, according to Counterpoint’s618 Sales Period Thematic Report. In terms of the competitive landscape for smartphone brands, vivo secured the largest share in the 618 sales period this year, capturing 18.2% of the market. vivo was followed by Apple at 17.9% and HONOR at 15.4%.

Applecontinued to excel in thepremiumsegment, exhibiting an 8% YoY increase without facing any significant competition. To boost iPhone sales during the 618 period, e-commerce websites offered discounts of around 20%.

Huawei saw a substantial 52% YoY growth in sales. The company declared that it had resumed normal product launches this year, unveiling smartphones ranging from the Mate X3 to Enjoy 60 series in H1 2023, covering almost all price segments. The accelerated pace of product launches is expected to contribute to Huawei’s sustained rapid YoY growth in H2 2023.

Note: 2023 618 period starts from June 1st to June 18th; vivo includes iQOO; Xiaomi includes Redmi.
Source: Counterpoint Market Pulse Service

The price cuts implemented by OEMs proved effective in helping themarketrecover from the significantly low smartphone sales witnessed in May and April. During the June 1-June 18 period, the total market sales increased by around 30% compared to the previous 18 days.

Online-centric Xiaomi increased most this year in sequential terms. It offered bigger discounts on select high-memory products. Xiaomi also expanded its product portfolio by introducing the K60 16GB+1TB variant at a competitive price of RMB 2,899 (~$400).

The weak sales during the 618 period also fell short ofearlier expectations, despite efforts by most Android OEMs to entice consumers with price cuts. Due to the uncertain economic outlook, consumers were more cautious in their spending, including on durable goods like smartphones.

As a result, we have revised downwards our 2023 forecast for the China smartphone market, from flat growth to a low single-digit YoY decrease.

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