Inflation Put Dent in Q2 Mid-Level Smartphone Demand: Canalys
North American smartphone shipments fell 6.4% year on year to 35.4 million in Q2 due to economic challenges, inflation and poor seasonal demand, said Canalys Monday. “Solid” iPhone 13 demand drove a 3% rise in Apple shipments, along with a…
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full quarter of entry-level third-generation iPhone SE performance. Samsung shipments rose 4% on strength of the flagship S series and low-end A-series devices, Canalys said. Apple led the quarter with 52% market share, rising 4 points from Q2 2021, followed by Samsung with 26% share, Motorola (9%), TCL (1.8%) and Google (0.8%), said the report. Most top vendors matched their shipments from Q2 2021; the volume decrease was caused by the “partially unfilled” gap created when LG left the smartphone market, it said. Vendors are responding quickly to falling demand in the North American market, focused on cutting the risk of oversupply as they prepare launches in the second half, said analyst Runar Bjorhovde. Consumer interest in low-end and high-end devices is sustaining the smartphone market, said analyst Brian Lynch. Performance of the latest iPhone SE, Galaxy A53 and Galaxy A33 is “poorer than initially expected,” Lynch said. Buyers who would typically consider devices costing in the $250-$600 range are looking for cheaper options “as they continue to feel the financial pressure of inflation on everyday expenses,” said Lynch. At the low-end, demand remains solid and competition between vendors is “fierce,” he said, giving Motorola’s refreshed G Power, Samsung’s A13 models and TCL’s new launches with Tracfone, Verizon and T-Mobile as “budget-friendly” phones increasingly in demand.