Smartphone shipments continue to slide, but secondhand and premium markets thrive

[Shawn Knight]

The big picture: The global smartphone market continued its decline in the second quarter of 2023 according to separate reports from Canalys and Counterpoint. It wasn't all doom and gloom, however, as some segments like premium devices continued to show promise.

Canalys said smartphone shipments dipped 11 percent year on year in Q2 while Counterpoint noted an eight percent year-over-year sell-through decline. Both research firms agreed that Samsung led the quarter by a significant margin. Canalys' data showed Samsung captured a 21 percent market share while Counterpoint had Sammy at a 22 percent share.

Apple finished in second place with a 17 percent share as reported by both firms. The third largest brand, Xiaomi, secured a 13 percent market share according to Canalys (12 percent per Counterpoint). Both also agreed that Oppo placed fourth with a 10 percent market share.

Counterpoint said the global smartphone market is now well past its rapid growth phase, adding that this is the eighth consecutive quarter with a YoY decline (or six quarters, according to Canalys). Indeed, consumer replacement cycles are getting longer and a more mature refurbished market is slowing upgrades in the low-to-mid tier segment.

As for premium tiers, growth continues to be immune to constraints impacting lower-end segments. In fact, this was the only segment that grew during the quarter. According to Canalys, more than one in five smartphones sold during Q2 were flagships. The sustained strong performance of the premium market has helped companies like Apple ensure that revenue does not suffer as much as sales volumes.

Counterpoint added that all regions saw sales decline in Q2, but the biggest declines happened in more developed regions like the US, Japan, and Western Europe, all of which experienced double-digit YoY dips.

Canalys analyst Le Xuan Chiew said the market is sending early signals of recovery following several quarters of decline dating back to 2022. Specifically, older inventory is starting to clear up to make way for new launches coming later this year.

Image credit: Daniel Romero

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https://www.techspot.com/news/99445-smartphone-shipments-continue-slide-but-secondhand-premium-markets.html

 

[JKnight]

When you have $1000+ phones, people keep their older phone for longer or buy used.

 

[yRaz]

I'm in no hurry to replace my S21+, the screen is pretty scratched up but the battery health monitor says that it's at still at 94% capacity after 2 years so I really have no incentive to upgrade. I HATE how closed the ecosystem is on the hardware, I'd love to throw a custom ROM on there, but I got it for free and it does everything I need it to. It makes calls, browses the web fine, takes great pictures and lets me argue with strangers on the internet so I have no real incentive to upgrade. I wont upgrade until the battery kicks or I break the screen and this thing has turned out to be an absolute tank so it might be awhile. Unless they make a phone with 10 folding cameras on the back, that might incentivize me to buy a new phone....

 

[p51d007]

Not sure how it works outside the usa, but here, people are still accustom to purchasing a phone from a carrier because they can get it "for free" if they sign a contract tied to a carrier.
They don't see it as a $1000 dollar phone because the "low" payment is lumped into their monthly phone bill.
Plus, I'm sure Samsung & Apple have a good deal with the major carriers to push their devices.
Unless I have a good trade in with a manufacturer, I keep mine about 2 years.

 

[BuckarooBonzaii]

Used and refurbished is the way to go especially with the prices these days. One, two or three year old phones are fine with me.

 

[Mr Majestyk]

Not sure how it works outside the usa, but here, people are still accustom to purchasing a phone from a carrier because they can get it "for free" if they sign a contract tied to a carrier.
They don't see it as a $1000 dollar phone because the "low" payment is lumped into their monthly phone bill.
Plus, I'm sure Samsung & Apple have a good deal with the major carriers to push their devices.
Unless I have a good trade in with a manufacturer, I keep mine about 2 years.

Phone companies in Australia long stopped giving you the phone for virtually free on a 24 or 36 month plan. You pay full price now or close to it unless their are sales from the carrier and phone manufacturer.

However iTards price their second hand phones at ludicrous levels; even 2-3 year old phones like iPhone 12 Pro they are asking over $1000. Android phones meanwhile crash and burn in value.