Apple Inc. is gaining ground in the global smartphone market, with the iPhone market share increasing year over year in the second quarter of 2022 while other markets contract. Analysts say global smartphone demand was weaker in the second quarter of 2022 than it was a year ago. Smartphone shipments fell 9% year-over-year, with various factors causing problems for the overall market.
Apple seems to be coping with this slump better than anyone else in this downturn. In Canalys’ quarterly estimates, Apple’s market share grew from 14 percent in Q2 2021 to 17 percent in Q2 2022, citing high demand for the iPhone 13.
This puts Apple second on the list, ahead of three other companies with declining shares. Xiaomi went from 17 percent to 14 percent, OPPO dropped from 11 percent to 10 percent and Vivo went from 10 percent to 9 percent.
Only one member of the top five saw an improvement, with Samsung’s share increasing from 18 percent to 21 percent. According to Canalys, Samsung is seeing a strengthening of its low-end A-series smartphone supply, helping to boost its performance numbers.
“Vendors were forced to review their strategies in the second quarter as the outlook for the smartphone market became more cautious,” said Runar Bjorhovde, research analyst at Canalys.” Economic headwinds, low demand and inventory buildup have led suppliers to quickly reassess their portfolio strategies for the remainder of 2022.”
Bjorhovde added that oversupply in the mid-market is a factor for vendors to consider when launching new products. With consumers’ budgets constrained, the analyst believes device purchases are shifting to the value end of the market.
Analyst Toby Zhu said sales in 2021 also enjoy “pent-up demand,” but for 2022, “consumers’ disposable income is already impacted by soaring inflation.” In the short term, Zhu believes suppliers will use promotions and offers to shift as much existing inventory as possible to make way for the next generation of product launches later this year.
Canalys’ analysis appears to be similar to that of others in that Apple is having success in a tough market.
In June, Counterpoint Research estimated that Apple hot-sold five of the top 10 smartphone models in April 2022. The firm also said Apple captured 62 percent of the premium smartphone market in the first quarter of 2022, the highest first-quarter result since 2017.
The report also said that the iPhone 13 continues to sell well and is better than the iPhone 12 from a year ago. This is very unusual in the market, as sales usually slow down in the months leading up to the release of a new model.