Smartphone sales suffer biggest quarterly drop in history

The smartphone sales worldwide registered in the last quarter of 2022 the largest drop in their history for a quarter. In total, in the last three months of the year, handset sales fell 18.3% year-on-year to 300.3 million units, according to IDC data. Meanwhile, the second-hand terminal market continues to grow.

This drop contributes to the fact that the sale of smartphones in 2022 has experienced a drop of 11.3% compared to 2021. Throughout the year, 1,210 million terminals have been sold worldwide, the lowest number of sales since 2013. This low level of sales is due, above all, to a drop in consumer demand, inflation and economic uncertainties.

This hard closing of the year in terms of smartphone sales endangers the recovery forecasts for 2023. Indeed, sales growth of 2.8% was expected for this year, but this figure is in jeopardy due to the sharp fall in sales. final three months of last year.

According to those responsible for tracking smartphone sales at IDC, these have never been so low in the last quarter of the year compared to the previous one. In addition, this drastic decline has caused suppliers to drastically reduce their sales. Aggressive bidding and promotions during the quarter have helped drive down existing inventory, but there were so many that they haven’t quite eliminated them or made the drop disappear.

As a consequence, suppliers are increasingly careful with their sales, planning and redistributing them with a focus on profitability. They have also had to solve problems with supplies in the period. Even Apple, which until now seemed immune to falling sales, suffered a slowdown in its supply chain due to the lockdowns in China, where it has its main factories.

Meanwhile, inflation and concerns about macroeconomic conditions continue to hold back consumer spending and postponing any possible signs of recovery until the end of 2023. Everything indicates that this year is going to be one of caution, as providers try to redistribute their portfolio of devices, and channels think twice before making more purchases if they have excess of inventory. On the positive side, this situation can lead consumers to have more offers and promotions throughout the year, especially in higher-end models.

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