Samsung and Apple Strengthen Market Positions as Global Smartphone Shipments Plunge 20%

The global smartphone market has suffered a major downturn due to soaring memory chip prices and worldwide supply shortages. According to a recent report by international research firm Counterpoint Research, global smartphone shipments fell by 20% in the third quarter of this year (July to September) compared with the same period last year.

This marks the lowest level of third-quarter smartphone shipments in 14 years. The main factors behind the widespread downturn have been identified as declining consumer purchasing power due to higher prices and a shrinking market for affordable budget smartphones.

Samsung and Apple Strengthen Their Market Dominance

Despite the contraction of the global smartphone market, South Korean technology giant Samsung and US-based Apple have achieved notable success.

Samsung led the market with a 23% share, up from 19% during the same period last year. The growth has been attributed to strong consumer demand for its newly launched Galaxy Z Fold8, Fold8 Ultra and Flip8 series.

Meanwhile, Apple ranked second with a 22% market share. According to Counterpoint, this represents Apple's highest-ever market share in a third quarter.

With global demand for expensive, premium handsets remaining resilient, both companies have managed to strengthen their positions despite the market downturn.

Decline of Chinese Brands and Future Challenges

A contrasting picture has emerged among other leading Chinese smartphone manufacturers. Rising prices for new chips have significantly increased production costs for mid-range and budget handsets. As a result, Xiaomi's market share has fallen from 14% to 10%.

Oppo and Vivo ranked fourth and fifth, respectively, with market shares of 9% and 8%. Since the beginning of the year, the average retail price of smartphones worldwide has increased by approximately 20%.

According to technology analysts, market conditions are likely to remain extremely challenging throughout the remainder of the year. Consequently, smartphone manufacturers are increasingly prioritising the production of expensive and flagship devices to protect their profit margins rather than focusing on selling larger volumes of handsets.

//DBTech/BMT/OR//