Smartphone Shipments Fall to Lowest Level in Nine Years

High inflation and fears over a global recession have led to softening worldwide demand for smartphones, shipments of which have declined to a low not seen since 2013. 

Global smartphone shipments plunged in the fourth quarter of 2022, usually a big holiday shopping period. A total of 1.21 billion smartphones were shipped in 2022, the lowest figure in nine years.

Apple retained its position as the biggest smartphone maker in the world, with 72.3 million iPhones shipped in the fourth quarter. Samsung, the second-largest smartphone manufacturer, shipped 58.2 million units over the same period. Both numbers represent roughly a 15% year-on-year decline.

Apple grappled with supply chain issues in the December quarter after a major manufacturing plant in Zhengzhou, China, was hit with a COVID outbreak and worker protests. However, that was not the only reason for its lower number of shipments.

With 2022 serving as a warning of things to come, 2023 is set up to be a year of caution as cellphone makers rethink their range of devices while retail channels reconsider accepting extra inventory.

The global smartphone market has never endured a holiday quarter lower than 2022, until now. Weakened demand and high inventory caused vendors to cut back drastically on shipments. Although the economic picture in the US has been tentatively positive, other major markets like China and the EU, are still grappling with issues relating to softening demand and high inflation, as reflected in the slower demand for new smartphones around the world.