Even the holiday rush couldn’t help the smartphone market

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What just happened? It’s no secret that the tech industry has seen its fair share of struggles in the wake of the recent inflation and economic issues. Despite this, smartphone manufacturers were hoping that the problems would end over the holidays. Unfortunately, this was not the case.

new Report by International Data Corporation (IDC) covering total smartphone shipments for both Q4 2022 and 2022 as a whole. According to the results, the fourth quarter of 2022 showed the worst single-quarter decline year-over-year. In the fourth quarter of 2021, manufacturers moved approximately 367.3 million smartphones. In the fourth quarter of 2022, the number barely exceeded 300 million, recording just 300.3 million shipments.

The numbers aren’t very promising year-over-year either. In 2021, 1.36 billion smartphones are distributed worldwide. In 2022, the number of smartphones shipped was just 1.21 billion, which is the lowest number of annual shipments recorded by IDC since 2013.

Although other industries are facing similar problems due to inflation and looming economic issues, the business of smartphones has not been noticeably hampered yet.

These numbers were unexpected and unexpected by IDC, according to Research Director Nabila Bhopal. The principal believes the main reason is “weak demand and high inventory,” which in turn has led manufacturers to cut back on shipments.

The second major reason for declining sales is the increase in the average time consumers hold their smartphones. Anthony Scarcella, another IDC research director, claims that refresh rates have been rising “over the past 40 months in most major markets.” This may be in part because two mobile carriers, Verizon and AT&T, have raised phone plan lengths to 36 months in recent years.

Scarsella also notes that this could be a good time for consumers to take advantage and upgrade, as more generous phone deals and promotions are expected to “continue into 2023.” Vendors will likely try to find any way to push upgrades and new hardware, especially high-end models, as the year progresses.

Samsung’s latest earnings report show up Its lowest quarterly profit in eight years, and Apple is expected to reveal much of the same in its report next week. Samsung and Apple both saw shipment numbers drop by about 15 percent.

Overall, the International Data Center (IDC) believes that the initial recovery forecast of 2.8 percent is likely to be “at risk,” as there is not much sign of declining demand stopping until “the end of 2023.” Sadly, it looks like the manufacturers may be in for another tough year.

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