Smartphone manufacturing is on the decline, according to a recent study by analytics firm TrendForce. According to analysts, in the third quarter of 2022, the total production of smartphones was about 289 million units. This is 11% less compared to the same period last year, but at the same time only 0.9% less than in the second quarter of 2022.
Analysts attribute the decline in smartphone production during the peak season, which has always been the third quarter, to the fact that manufacturers now prefer to sell off inventory and reduce production volumes due to serious global economic problems.
The South Korean company Samsung remains the leader in the production of smartphones, which shipped about 64.2 million devices last quarter, up 3.9% compared to the second quarter of this year. As a result, the share of Samsung was 22.2%.
Apple is in second place with a 17.6 percent share. It shipped 50.8 million iPhones in the third quarter. At the same time, analysts note that Apple has benefited from the redistribution of demand that has occurred in the global market due to the reduction in the presence of the Chinese company Huawei. Optimal prices for new iPhone models also contributed to production, which also stimulated demand. The peak of sales of the new flagships from the iPhone 14 series, according to TrendForce forecasts, will be reached in the fourth quarter of 2022.
Rounding out the top 5 leading smartphone manufacturers in the world are three Chinese companies. These are Xiaomi, OPPO and Vivo, which own 13.1%, 11.6% and 8.5% of the global market respectively.
TrendForce analysts note that the smartphone market began to show signs of weakening a year ago, in the third quarter of 2021. Since then, they have recorded a decline in the production of new smartphones for six consecutive quarters. At the same time, analysts are quite optimistic, expecting that the production of new smartphones will eventually return to growth when manufacturers complete inventory adjustments. Only now this will happen no earlier than the second quarter of 2023.
In conclusion, analysts gave a forecast for the final quarter of 2022. They expect global smartphone production to be around 316 million units in the fourth quarter. This will be a 9.3% increase compared to the third quarter of 2022, but at the same time, on an annualized basis, production will still show a decline.
Source: Trash Box
Charles Grill is a tech-savvy writer with over 3 years of experience in the field. He writes on a variety of technology-related topics and has a strong focus on the latest advancements in the industry. He is connected with several online news websites and is currently contributing to a technology-focused platform.
