The smartphones market has encountered major difficulties after six straight quarters of falling shipments. However, experts have seen signs of improvement, so there is finally some hope, claims Canalys.
Smartphones Market Decline and Recovery
Despite an 11% year-over-year reduction in global smartphones shipments, the situation is marginally better than the 12% decline seen in Q1.
Vendors are aggressively trying to get rid of their inventory by marketing older models, which frees up space for upcoming product launches.
They are also taking proactive steps to ensure a steady supply of essential components, protecting themselves from future price increases.
The top five smartphones manufacturers all kept their positions in the most recent quarter, despite the fact that some of them saw varied degrees of drop.
For instance, Samsung’s market share stayed largely stable with a small decline from 22% to 21%, while Apple’s market share declined from 21% in Q1 to 17% in Q2.
Positively, the demand for Xiaomi’s new Redmi models drove a significant boost of 2% for the company. Similar to how inexpensive Vivo’s Y-series smartphones have become extremely popular with consumers.
“Oppo, Vivo, Transsion, and Xiaomi are growing their market share in the sub-$200 price band through stronger sales incentives and retail aggression,” said Le Xuan Chiew, Analyst at Canalys.
Canalys noticed, “Growing investments in the channel in the form of channel incentives and targeted marketing campaigns to stimulate consumer demand for new launches, driving channel activity.”
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