Electronics

According to import and export data released by market research firm Canalys, the global smartphone market fell 12% year-on-year in the first quarter of 2023, marking the fifth consecutive quarter of decline. Although the main unfavorable macro factors have slightly improved, the market has not yet begun to recover.

According to import and export data, in the first quarter of 2023, the top five manufacturers in the global smartphone market share were Samsung, Apple, Xiaomi, OPPO, and vivo. Among them, Samsung is the only leading manufacturer to achieve month on month growth, struggling to return to the top with a market share of 22%; Import and export data shows that Apple fell to second place with a 21% market share, driven by solid demand for the iPhone 14 Pro series, and the gap between Apple and Samsung was narrowing in the first quarter; Driven by the release of new products at the end of the quarter, Xiaomi maintained its third place market share with 11%, but inventory adjustments are still ongoing; OPPO and vivo have strengthened their market positions in Asia Pacific and China, respectively occupying 10% and 8% of the global market share, ranking fourth and fifth.

Canalys believes that the decline in the first quarter of 2023 was actually expected by the industry. The local macroeconomic situation continues to hinder manufacturers' investment and operation in some markets. Despite manufacturers' price cuts and active promotions, consumer demand remains sluggish, especially at the low end, where high inflation has affected consumer confidence and spending levels. In addition, according to the observation of Huacheng's import and export data, the continuous decline in terminal market demand has also triggered a large-scale destocking movement in the entire mobile phone supply chain, accompanied by channels lowering inventory levels to ensure normal operation. Manufacturers maintain low shipments and continue to adopt cautious production strategies, which has had a long-term negative impact on the supply chain.

Canalys also pointed out that in the continuous decline, we have noticed some signs of easing. There has been an improvement in demand for certain price ranges and products. Other manufacturers are becoming more proactive in production planning and component orders. Canalys predicts that the inventory of the entire smartphone industry, both on the channel and manufacturer sides, will reach a relatively healthy level by the end of the second quarter. It is still too early to say that the overall consumer demand will recover. However, in the coming quarters, due to a decrease in inventory, the shipping level will improve, as reported by Huacheng Import and Export Data Observation.