Canalys Newsroom – Global smartphone market shrinks 17% in Q4, to end 2022 with under 1.2 billion shipments

Worldwide smartphone shipments fell 17% year on year in Q4 2022. Full-year 2022 shipments declined by 11% to fewer than 1.2 billion, reflecting an extremely challenging year for all vendors. Apple reclaimed the top spot in Q4 and achieved its highest quarterly market share ever at 25%, despite facing shrinking demand and manufacturing issues in Zhengzhou. Samsung finished the second quarter with a 20% market share but was the largest vendor for the full year. Xiaomi retained third place despite its share falling to 11% in Q4, largely due to challenges in India. OPPO and vivo rounded out the top five, taking 10% and 8% market shares respectively.

Global-Smartphone-Market-Q4-2022

“Smartphone vendors have struggled in a difficult macroeconomic environment throughout 2022. Q4 marks the worst annual and Q4 performance in a decade,” said Canalys Research Analyst Runar Bjørhovde. “The channel is highly cautious with taking on new inventory, contributing to low shipments in Q4. Backed by strong promotional incentives from vendors and channels, the holiday sales season helped reduce inventory levels. While low-to-mid-range demand fell fast in previous quarters, high-end demand began to show weakness in Q4. The market’s performance in Q4 2022 stands in stark contrast to Q4 2021, which saw surging demand and easing supply issues.”

“Vendors will approach 2023 cautiously, prioritizing profitability and protecting market share,” said Canalys Research Analyst Le Xuan Chiew. “Vendors are cutting costs to adapt to the new market reality. Building strong partnerships with the channel will be important for protecting market shares as difficult market conditions for both channel partners and vendors can easily lead to strenuous negotiations.”

Global Smartphone Market 2022

Canalys forecasts flat to marginal growth for the smartphone market in 2023, with conditions expected to remain tough. “Although inflationary pressures will gradually ease, the effects of interest rate hikes, economic slowdowns and an increasingly struggling labor market will limit the market’s potential,” added Chiew. “This will adversely affect saturated, mid-to-high-end-dominated markets, such as Western Europe and North America. While China’s re-opening will improve domestic consumer and business confidence, government incentives are only likely to show effects in six to nine months and demand in China will remain challenging in the short term. Still, some regions are likely to grow in the second half of 2023, with Southeast Asia in particular expected to see some economic recovery and a resurgence of tourism in China helping to drive business activities.”

Worldwide smartphone shipments and growth
Canalys Preliminary Smartphone Market Pulse: Q4 2022

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Q4 2021 market share

Q4 2022 market share

Apple

23%

25%

Samsung

19%

20%

Xiaomi

13%

11%

OPPO

9%

10%

I live

8%

8%

Others

28%

26%

Preliminary estimates are subject to change on final release
Note: percentages may not add up to 100% due to rounding
Source: Canalys estimates (sell-in shipments), Smartphone Analysis, January 2023

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Worldwide smartphone shipments and growth
Canalys Preliminary Smartphone Market Pulse: 2022

local

2021 market share

2022 market share

Samsung

20%

22%

Apple

17%

19%

Xiaomi

14%

13%

OPPO

11%

9%

I live

10%

9%

Others

28%

28%

Preliminary estimates are subject to change on final release
Note: percentages may not add up to 100% due to rounding
Source: Canalys estimates (sell-in shipments), Smartphone Analysis, January 2023

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For more information, please contact:

Runar Bjørhovde: runar_bjorhovde@canalys.com +44 7787 290 115
Le Xuan Chiew: read_chiew@canalys.com +65 9655 6264

About Smartphone Analysis

Canalys’ worldwide Smartphone Analysis service provides a comprehensive country-level view of shipment estimates far in advance of our competitors. We provide quarterly market share data, timely historical data tracking, detailed analysis of storage, processors, memory, cameras and many other specs. We combine detailed worldwide statistics for all categories with Canalys’ unique data on shipments via tier-one and tier-two channels. The service also provides a unique view of end-user types. At the same time, we deliver regular analysis to give insights into the data, including the assumptions behind our forecast outlooks.

About Canalys

Canalys is an independent analyst company that strives to guide clients on the future of the technology industry and to think beyond the business models of the past. We deliver smart market insights to IT, channel and service provider professionals around the world. We stake our reputation on the quality of our data, our innovative use of technology and our high level of customer service.

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