Smartphone shipment reportedly slumps by 24% according to analysts. The second quarter of the year saw a year-over-year drop in the shipment of phones in the United States.
Smartphone Shipment Slumps 24%
The shipment of smartphones in the US in the second quarter of 2023 dropped by a significant 24% in contrast to the same period in the previous year, as per analyst firm Counterpoint Research.
The report of Counterpoint which was published on Friday stated that this is the third consecutive quarter of declining shipment of phones in the US.
“Despite inflation numbers falling through the quarter and ongoing strength in the job market, consumers hesitated to upgrade their devices amid market uncertainty,” Matthew Orf, Counterpoint Research Analyst in a press release stated, noting that he however expects shipments to keep dropping into the next quarter.
Phone Manufactures and How They Have Been Affected
Manufacturers in question were reportedly affected to different extents, with makers of Android phones, in particular, suffering the most. The shipments of Samsung dropped by 37%, Motorola shipments by 17%, and TCL-Alcatel shipments on the other hand by 69%.
The iPhone shipments of Apple declined by only 6%, which Counterpoint analysts reportedly credited to strong carrier promotions that were subsidizing costs for the pricey phones of the brand although it is also very much likely to reflect on just how insulated premium phone sales have been from the shocks of pandemic shipment. Google’s phone shipments however increased by 48%, but given that it had only 2% of US phone sales in this period in the previous year; it’s quite a tame gain in comparison.
How the Big Guns Fared
And despite the lower overall shipment of phones, that shakeup has led Apple to increase its domination of the US phone market significantly to 55% from 45% in the same period in the previous year. Meanwhile, Samsung on the other hand dropped to 23% from its previous 28%. Other phone-makers in the market stayed at roughly the same level.
The Reason for the Decline In Phone Shipments
The phone industry as you should know has struggled over the last couple of years, and as the pandemic slowed both demand and supply shortages reportedly interrupted availability. And although supply chains have quite recovered since, it really isn’t totally clear as to just how long it will take for demand to resume pre-pandemic levels. The International Data Corporation however had predicted that the global phone industry would recover 6% year-over-year in the year 2024.
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