In recent times, smart phones can be described as a mountain of pressure, in the face of the dilemma of the development of the smartphone market, just a recent data release, the global smartphone market in the third quarter fell only 1%, this news has even become a lot of people happy good news, why only a decline of 1% will become good news?
The global smartphone market fell only 1% in the first and third quarters
According to data released by Canalys, a third-party technology market research agency, the global smartphone market fell by 1% in the third quarter of 2023, with shipments reaching 294.6 million units as manufacturers improved their inventory situation in the second quarter and launched new products in the third quarter. Samsung topped the list, thanks to the earlier iteration of new folding screen products to stabilize its market position, with shipments of 58.6 million units and a market share of 20%.
Driven by demand for new iPhone 15 products, Apple followed with 50 million units shipped and a 17% market share. Xiaomi's strong performance in emerging markets led it to third place, with 41.5 million units shipped, achieving an annual growth of 2%.
OPPO (including OnePlus) came in fourth, with 26.4 million units shipped and a 9% market share. Transsion (which includes Tecno, Infinix and iTel) continued to hold on to fifth place, continuing the strong momentum of the previous quarter, with 26 million units shipped, successfully defending its position in the top five.
Sanyam Chaurasia, a senior analyst at Canalys, said Xiaomi and Transsion maintained their strong performance in the previous quarter, making them the only manufacturers in the top five to achieve growth. Xiaomi successfully returned its inventory to normal in the first half of 2023 and actively released cost-effective entry-level models of the Redmi Digital series in emerging markets, allowing it to regain growth momentum in the third quarter.
2. Why is it good news that only 1% has fallen?
In the context of the global consumer electronics market, the performance of the smartphone market has been in the spotlight. However, when we see the data that the global smartphone market fell by only 1% in the third quarter, many people's first reaction may be disappointment. After all, for those familiar with the mobile phone market, a 1% decline is really not good news, in previous years we are all Xi to two or three digits of market growth, now a decline of only 1% seems to be a little inadequate. But if we dig deeper into this data, we see that this is actually good news, what do we think about it?
First of all, we need to recognize that the development of the smartphone market is affected by a variety of factors, including technological innovation, market demand, economic environment, etc. In the past few years, the smartphone market has benefited from the rapid development of communication technologies such as 4G and 5G, as well as the strong demand for smartphones. However, with the popularization of technology and the gradual saturation of market demand, the development rate of the smartphone market has begun to slow down.
For those familiar with the mobile phone market, a 1% decline is really not exciting news. In past boom times, market growth has often been in the double digits or even higher. However, we must recognize that the growth of the market is not endless, especially in the context of the current cold winter in the consumer electronics market. In recent years, with the increase of market saturation, the slowdown of technology iteration and the fluctuation of consumer purchasing power, the growth rate of the smartphone market has slowed down significantly, and even negative growth, which is the reality of the market.
Secondly, in this context, the significance of the global smartphone market decline of only 1% in the third quarter is particularly important. This suggests that the smartphone market has begun to show some resilience after a possible deep correction and market weakness. Compared with the previous sharp decline, the 1% decline is undoubtedly an important indicator of improved market conditions.
Although there is no high growth in the past, when the market decline is compressed to 1%, it actually represents a change in the trend. This change may indicate that the market is close to bottoming out and is about to enter a new stage of development. In an economic cycle, the bottom of the market is often a turning point, heralding future recovery and growth. Therefore, a 1% decline not only means that the market has been effective in resisting external pressures, but also suggests that the market may be building up strength for the next round of growth.
Third, once the market trend changes, especially when it bottoms out and stabilizes, the development of the smartphone market is even more worth looking forward to. In the process, manufacturers may readjust their strategies, increase R&D investment, and launch more innovative and competitive products to meet the evolving needs of consumers. At the same time, with the accelerated application of new technologies such as 5G, AI, and the Internet of Things, smartphones are expected to become an important carrier of these new technologies, bringing new growth momentum to the market.
So, while the data that the global smartphone market fell by only 1% in the third quarter does not look optimistic on the surface, it is actually a very positive sign. It shows that the fundamentals of the market are improving and the trend of the market is moving in a positive direction. This is very good news for investors, as it could signal that the bottom of the market is approaching and that growth may gradually resume in the future.
In this context, the significance of the global smartphone market falling by only 1% in the third quarter is particularly important. This suggests that the smartphone market has begun to show some resilience after a possible deep correction and market weakness. Compared with the previous sharp decline, the 1% decline is undoubtedly an important indicator of improved market conditions.