According to Canalys data, the North American smartphone market shipped 35.4 million units in the second quarter of 2022, down 6.4 percent year-over-year. Apple led North America for the third consecutive quarter with a 3 percent growth rate due to strong demand for iPhone 13 and the strong performance of the entry-level iPhone SE (3rd generation) throughout the quarter.
Samsung’s S Series and low-end A Series devices continued to sell well, with shipments up 4 percent. Lenovo (Motorola), TCL and Google rounded out the top 5, with 9 percent, 5 percent and 2 percent market share, respectively.
Canalys research analyst Runar Bjørhovde said the North American smartphone market has shifted after a rapid recovery in 2021. Once the world’s most resilient market in terms of demand, North America has also seen a contraction in demand in the face of triple headwinds of high inflation, declining consumer confidence and a slowing economy. Manufacturers are taking rapid steps to address the demand downturn, seeking to reduce the risk of oversupply while also preparing for new product launches in the second half of 2022. Most of the top vendors are shipping at the same level as they did in the second quarter of 2021, and the decline is largely the result of LG’s legacy gap still not being fully filled.
Canalys research analyst Brian Lynch said consumer interest in low-end and high-end devices remains unabated, but demand for mid-range devices is rapidly waning. iPhone SE (3rd generation), Galaxy A53 and Galaxy A33 are performing below initial expectations. For buyers who would normally consider a device priced between $250 and $600, declining purchasing power is forcing them to look for more affordable devices as consumers continue to feel the financial strain of inflation on their daily expenses.
At the lower end of the market, demand remains strong, but competition among manufacturers is fierce. Motorola’s new G Power, Samsung’s A13 model and TCL’s Tracfone, as well as new products from Verizon and T-Mobile, provide plenty of options for the growing demand for entry-level products. The high-end market also remains strong, with Apple’s iPhone 13 series and Samsung’s Galaxy S series both finding their time. For Samsung, the S pen in the Galaxy S22 effectively differentiates the Ultra series among high-end Android phones, making it Samsung’s best-selling model in the North American market.
Lynch believes that manufacturers and carriers are generally concerned about demand in the second half of 2022, leading to increased efforts to control inventory and other costs. To accelerate sales, vendors are expected to invest heavily in marketing campaigns with a variety of promotions and bundled sales. This investment is particularly important for those vendors in the entry-level market who are interested in expanding their market share and maintaining their carrier position.
