Preliminary Q2 global smartphone market data from Canalys and Counterpoint Research showed further declines, though both companies provided glimmers of hope, with the former suggesting recovery is in sight.
In its shipments report for the quarter, Canalys recorded an 11 per cent year-on-year drop, noting the gloomy demand had even started impacting market leaders Samsung and Apple.
However, it stated other major players were showing signs of improvement as macroeconomic conditions stabilise.
Canalys research analyst Le Xuan Chiew claimed the market was “sending early signals of recovery after six consecutive quarters of decline”, pointing to increased channel investment and targeted marketing campaigns to stimulate demand for new launches.
He added following “stronger sales incentives and retail aggression” brands including Oppo, Vivo, Transsion and Xiaomi were growing their share in the sub-$200 category.
While Canalys highlighted boosts at the lower-end, Counterpoint Research stated the premium segment was a “silver lining” for the market.
It noted handsets with a wholesale price above $600 were continuing to “grow immune to broader constraints”, adding the “mature consumer is opting for a superior experience, supported by the easy availability of finance options across key geographies”.
“The premium segment was the only segment that grew during the quarter, reaching its highest-ever Q2 contribution to the overall market. More than one-out-of-five smartphones sold during the quarter belonged to the premium segment,” Counterpoint Research claimed.
It reported an 8 per cent drop in sell-through across the whole industry while tipping a slow recovery over the coming quarters.
In terms of vendor market share, both companies reported little change, as Samsung, Apple, Xiaomi, Oppo and Vivo retained their respective places as the top five with almost identical market share to Q2 2022.