Smartphone Market Woes Continue With 14.6% Drop in First Quarter This Year, According to IDC Tracker

NEEDHAM, Mass.–(BUSINESS WIRE)–#Apple–Worldwide smartphone shipments declined 14.6% year over year to 268.6 million units in the first quarter of 2023 (1Q23), according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker. This marks the seventh consecutive quarter of decline as the market continues to struggle with lukewarm demand, inflation, and macro uncertainties. While the decline is more than the 12.7% IDC previously forecasted, the results aren’t surprising. Inventory has remained elevated across regions, however it is in significantly better shape compared to six months ago thanks to reduced shipments and heavy promotional activities.

“The industry is going through a period of inventory clearing and adjustment. Market players remain cautious deploying a conservative approach rather than dumping more stock into channel to chase temporary gains in share. I think is the smart thing to do if we want to avoid an unhealthy situation like 2022,” said Nabila Popal, research director with IDC’s Worldwide Tracker team. “While we are optimistic about recovery by the end of the year, we still have a tough 3-6 months ahead. Everyone is anxious about exactly when the tide will turn and wants to be first to ride the wave of recovery. However, it’s a tricky situation. Anyone who jumps in too soon will drown in excess inventory. Now more than ever, it’s important to keep a close pulse of market. Barring unforeseen elements, IDC expects the market to cross into positive territory in the third quarter and see healthy double-digit growth by the holiday quarter.”

Almost all the regions suffered double digit decline in 1Q23. China witnessed close to 12% drop, which was slightly more than expected despite the recent reopening of the market. Consumers are prioritizing travel and entertainment over smartphone purchases and uncertainty still lingers, which is dampening consumer sentiment. Developed markets like the USA and Western Europe fared better than others with declines of 11.5% and 9.4% respectively. Emerging markets like APeJC, CEE and MEA saw larger 17- 20% declines.

“On a positive note, based on recent discussions we’ve had with OEMs and supply chain it appears the smartphone industry is collectively gaining confidence that we’ll see return to growth late this year, and into 2024,” said Ryan Reith, Group VP with IDC’s Worldwide Tracker team. “The largest supply side pullback in recent months was primarily those brands that serve the mid to low end of the market. This is usually where competition is high, and margins are low. Typically, these players are more hesitant to ramp back up again, and while this may still be the case, we are starting to see signs that optimism is growing amongst this crowd.”

Notes:

• Data are preliminary and subject to change.
• Company shipments are branded device shipments and exclude OEM sales for all vendors.
• The “Company” represents the current parent company (or holding company) for all brands owned and operated as a subsidiary.
• Figures represent new shipments only and exclude refurbished units.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC’s Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.

For more information about IDC’s Worldwide Quarterly Mobile Phone Tracker, please contact Jackie Kliem at 508-988-7984 and jkliem@idc.com.

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About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world’s leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

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Contacts

Michael Shirer

press@idc.com
508-935-5200

Nabila Popal

npopal@idc.com
+1 508-872-8200

Anthony Scarsella

ascarsella@idc.com
+1 508-935-4712

Ryan Reith

rreith@idc.com
+1 508-935-4301