Apple grows its smartphone share as industry slumps
Yet another report, this time from Canalys, seems to confirm that while the smartphone industry is declining, Apple is growing its share of what’s left on that plate. Or, as Jony Ive once told us, “consumers are discerning”.
Apple only top 5 vendor to record positive growth
The news according to Canalys is as follows:
“In Q3 2022, the global smartphone market recorded its third consecutive decline this year, dropping 9% year-on-year, marking the worst Q3 since 2014.”
The report confirms consumers are delaying purchases and says this will continue to dampen smartphone sales for months.
The report also points out that Samsung’s leading 22% marketshare has in part been driven by what it calls “heavy promotions to reduce channel inventory.”
On Apple, it explains: “Apple was the only vendor in the top five to record positive growth, improving its market position further with an 18% share during the market downturn thanks to relatively resilient demand for iPhones.”
At the same time, it may turn out to be relevant that Apple’s seen a big demand shift towards its higher price Pro range of devices at the expense of its entry-level sales. This suggests higher ASPs too.
Canal’s shows it like it is
What Canalys said
“The smartphone market is highly reactive to consumer demand and vendors are adjusting quickly to the harsh business conditions,” said Canalys Analyst Amber Liu.
“For most vendors, the priority is to reduce the risk of inventory building up given deteriorating demand. Vendors had significant stockpiles going into July, but sell-through gradually improved from September owing to aggressive discounting and promotions.
“The pricing strategy of new products is cautiously crafted, even for Apple, to avoid significant pushback from consumers who now tend to be very sensitive to any price hike,” added Liu.
What may happen
The analysts speculate the effect of the slump will be evidenced in the form of steep discounts, bundling promotions and price reductions on older devices. They anticipate slow but steady sales in the period.
If we see Apple and carriers offering similar deals this season on iPhone, which continues to do relatively well in comparison with competitors, then we know this is for real.
What this might mean
Apple continues to sell phones and its devices remain popular despite the slump. Consumers haven’t quite given up on iPhone purchases yet, though I suspect the next 12 months will be challenging for most industry players. Apple, of course, is unique in that it also offers a rich source of cross-platform services which it can make available to its customers. Competing hardware vendors don’t have that opportunity. Apple will announce its fourth fiscal quarter results on Thursday October 2
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