Canalys reported smartphone shipments in North America fell 6.4 per cent year-on-year to 35.4 million units in Q2 due to economic challenges, inflation and slow seasonal demand.
The research company noted Apple’s shipments grew 3 per cent to 18.5 million units, fuelled by demand for the iPhone 13, with Samsung also gaining ground on the popularity of its Galaxy S and Galaxy A ranges (up 4 per cent to 9 million).
Lenovo owned Motorola was up 1 per cent to 3.1 million, TCL Communication fell 11 per cent to 1.8 million and Google was up 230 per cent to 800,000.
Canalys analyst Brian Lynch stated consumer interest for low- and high-end devices is sustaining the market, but “the appetite for mid-range devices is vanishing fast”.
Analyst Runar Bjorhovde added a “combination of high inflation, decreasing consumer confidence and an economic slowdown is shrinking demand” in the previously resilient North American market.
Lynch stated decreasing purchasing power “is forcing buyers who normally would consider devices costing between $250 and $600 to look for cheaper options”.
“In the low-end, demand remains solid, but competition between vendors is fierce”, Lynch added, pointing to Motorola, Samsung and TCL Communication.
The analyst noted vendors and operators had begun implementing stricter inventory and cost controls to mitigate any drop in demand during H2.
“Vendors are expected to invest heavily in marketing and offer promotions and bundles to speed up sell-though. This effort will be critical for low-end market challengers looking to grow their market share and defend carrier slots.”