Canalys: Smartphone sales fell 9% in Q2 2022 due to oversupply and soaring inflation
Canalys posted a troubling report on the smartphone market for Q2 2022. Shipments between April and June fell 9% YoY after weaker demand, following “economic headwinds and regional uncertainty”.
Samsung remained the top maker in Q2 while Apple retook second place from Xiaomi after strong iPhone 13 sales, while Chinese makers struggled at home.
According to Runar Bjørhovde, Research Analyst at Canalys, companies faced sluggish demand, which led to rethinking quarterly strategies. The soaring inflation and inventory pileup resulted in makers “reassessing their portfolio” for the remainder of 2022.
The mid-range segment is struggling more than expected. It is generally overcrowded, and now sales are even more sluggish as consumers tend to look for even cheaper devices.
Falling demand is causing great concern for the entire supply chain, added Toby Zhu, Analyst with Canalys. Cost pressures are easing, but there’s still the problem with logistics and production. For example, some emerging markets’ tightened import laws and customs procedures delay shipments even more.
The 9% decline is also affected by extremely high demand twelve months ago. There was a pent-up demand, following the tough 2020, while today consumers’ disposable income is going towards other products and goods, not electronics.
