Global smartphone sales fall to lowest level in a decade

According to data compiled by Counterpoint Research, the market share of the top five brands, including Chinese companies Xiaomi, Oppo and Vivo, has fallen to a three-year low.

Overall, global smartphone shipments extended their year-on-year decline to the ninth consecutive quarter, with Counterpoint Research blaming the decline on demand in markets that have not recovered as quickly as expected.

The report raises concerns that the continued decline in the smartphone market could drag down upcoming earnings for companies like Apple, which saw sales fall 8% in the latest quarter. Market leader Samsung Electronics also saw shipments fall 13% in the period.

Among the companies that gained market share in the July-September 2023 period was Apple’s Chinese rival Huawei. Despite tough US sanctions, Huawei shocked the industry earlier this year with its Mate 60 Pro smartphone, which used a cutting-edge, domestically produced chip.

However, Counterpoint Research's report also showed that total smartphone shipments have increased by 2% across the industry since Q2, raising hopes that the market could end its more than two-year decline in Q4 2023.

Counterpoint Research data also shows that emerging markets remained a bright spot for smartphone sales in the third quarter, with the Middle East and Africa being the only regions to record year-over-year sales growth in the quarter.

Counterpoint Research cited the iPhone 15 series, which will go on sale in September, as a factor that could help revive smartphone sales growth in developed markets such as the US, Europe and South Korea.

The company also said that the festive season in India, the 11/11 Singles Day sale event in China and year-end promotions across regions will also support the global smartphone market.

But overall, Counterpoint Research says the global smartphone market is expected to continue to decline throughout 2023 to its lowest level in a decade, largely due to changes in consumer replacement habits, especially in developed markets.