Smartphone sales on a global scale have witnessed a remarkable increase in the month of October, marking a significant reversal after facing a downward trend for 27 consecutive months. This resurgence has been predominantly driven by the revival of emerging markets, as evidenced by data from Counterpoint Research. The report reveals that retail sales volumes, also known as sell-through transactions, grew by 5% year-on-year in October. While developed markets with higher smartphone saturation have shown a slower recovery, emerging markets have played a pivotal role in this positive shift.
Emerging Markets Foster Growth
The recovery in emerging markets has been a key contributor to the rise in global smartphone sales. Counterpoint Research attributes this growth to various factors such as the continuous recovery in the Middle East and Africa, Huawei’s successful re-entry into the Chinese market, and the onset of the festive season in India. Huawei, in particular, experienced the fastest growth among smartphone manufacturers in China during Q3, following the release of its highly anticipated Mate 60 Pro smartphone in September. The device garnered significant consumer interest due to its advanced chip technology, bolstering Huawei’s market position.
Influence of Apple and Delayed iPhone Launch
The launch of Apple’s iPhone 15 series in late September also played a pivotal role in boosting global smartphone sales. Counterpoint Research notes that compared to the previous year, the iPhone launch was delayed by a week, resulting in the full impact of new iPhone sales being felt in October. The popularity of Apple’s latest offering contributed to the overall increase in smartphone sales during the month.
The global smartphone market has faced numerous challenges, including component shortages, inventory build-up, and longer replacement cycles. These factors, coupled with an uncertain macroeconomic environment, have led to year-on-year declines in global smartphone sales for over two years. However, the decline has shown signs of slowing down. Canalys, a renowned tech research firm, reported a mere 1% decline in global smartphone shipments during the third quarter, compared to a significant 10% decline in the previous quarter. Rising demand for new smartphones in emerging markets has acted as a driving force for brands and channels as they approach the holiday season.
Samsung, a prominent player in the smartphone industry, continued to lead the global market during the third quarter, boasting a 20% share of total smartphone sales. Apple secured the second position with a 16% market share, followed by Chinese brands Xiaomi (12%), Oppo (10%), and Vivo (8%). Counterpoint Research predicts further growth in the global smartphone market during the fourth quarter. Building upon the strong performance in October, the research firm anticipates a year-on-year market growth in Q4 of 2023, laying the foundation for a gradual recovery in the subsequent quarters.
The global smartphone market has experienced a notable upturn in October, bringing an end to the prolonged decline witnessed over the past two years. The recovery has been primarily driven by emerging markets, with Huawei’s resurgence in China and the release of Apple’s iPhone 15 series playing significant roles. Despite ongoing challenges such as component shortages and longer replacement cycles, the industry shows promising signs of growth. As the holiday season approaches, brands and channels are likely to capitalize on rising demand in emerging markets, further fueling the recovery of the global smartphone market.
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