Apple and Samsung market share rises despite drop in smartphone shipments
Apple and Samsung, the top two smartphone brands, were able to grow their market share after releasing new models of their flagship products, even as global smartphone shipments dropped, a report has said.
Apple’s market share grew by a fifth to 18 per cent in the first quarter of this year, up from 15 per cent in the same period a year ago, thanks to the continued strength of its iPhone 13 series, a report by research company Canalys showed.
Meanwhile, Samsung Electronics, the world’s largest mobile phone manufacturer, now holds about a quarter of the market, up from 22 per cent in the same period a year ago, helped by its new Galaxy S22 line-up that was unveiled in March.
The brands expanded their market share as global smartphone shipments declined 11 per cent in the first quarter, Singapore-based Canalys said in its first smartphone Market Pulse report for this year.
The overall annual decline reflects the challenges being faced in the market, most notably due to economic uncertainty caused by a resurgence of Covid-19 cases in China, the world’s biggest smartphone market, and Russia’s military offensive in Ukraine that has hurt consumer confidence.
“The global smartphone market was held back by an unsettled business environment in Q1,” Nicole Peng, vice president for mobility at Canalys, wrote in the report.
“Markets saw a spike in Covid-19 cases due to the Omicron variant,” she said, although minimal admissions to hospital and high vaccination rates helped to bring consumer activity back to normal quickly.
“Vendors face major uncertainty due to the Russia-Ukraine war, China’s rolling lockdowns and the threat of inflation. All this added to traditionally slow seasonal demand.”
Global smartphone shipments, as with other commodities, were affected by the Covid-19 pandemic that started in 2020.
However, the sector grew by 6 per cent on an annual basis last year on increased consumer spending as the industry emerged from disruptions caused by the health crisis, said a report released by research company Gartner in March. In the same month, Counterpoint Research said that sales of premium smartphones – handsets priced at more than $400 – increased by 24 per cent globally on an annual basis last year to hit their highest ever level, outperforming the 7 per cent yearly growth in overall global smartphone sales.
Premium devices accounted for about 27 per cent of overall shipments, a record high.
Cupertino-based Apple boosted its portfolio by releasing new devices in March, including an Alpine Green variant of the iPhone 13 series and the third-generation iPhone SE, as it seeks to capture more of the cheaper device segment.
Consumers are also looking forward to the iPhone 14 lineup, which is expected to come with a major redesign and will be released in September.
“Apple is gaining ground in market share despite the company’s smartphones mainly being considered expensive, compared to competitors,” smartphone accessories manufacturer Burga said in a separate report. “It can be assumed that the devices are gaining more appeal, with the company leveraging its loyal consumer base that is attracted by the devices’ regular new features and the overall innovative designs.”