Smartphone sales fell in the second quarter, Canalys reported. Worldwide shipments fell to 287 million units. Samsung remained in the lead, while Apple recaptured second place from Xiaomi as Chinese companies struggled to respond to dwindling demand.
Samsung and Apple may have seen minor improvements year on year, but it’s the Chinese companies that are dragging the entire market into the red. China had a number of lockdowns during the quarter, disrupting the smartphone market and hurting local brands, which have a strong presence there.
Analysts predict that a shortage of supply chains will no longer be the pressing problem for the industry as parts orders dwindle and suppliers worry about oversupply. The situation is asking more of companies to adapt and plan accordingly, including measures such as additional savings and competitive products launched in the second half.
Predictions for H2 2022 are that demand will remain weak despite upcoming launches and festival sales. Some of the key reasons are the challenging business conditions of a strong US dollar, geopolitical issues, Chinese companies struggling in a large market like India and high inflation around the world.