Smartphone market hits 'lowest Q3 levels' in decade as volumes fall 8%

Refurbished smartphone sales recorded 15% growth in the current year so far on a year-on-year basis, while at the same time, the overall new smartphone sales dropped 5%, according to the latest data by market research firm Counterpoint Research.

Global smartphone sell-through volumes fell 8% YoY in Q3 2023, the ninth consecutive quarter to record a decline, but grew 2% QoQ, Counterpoint’s Market Pulse service data shows.

The dropping volume of smartphones is attributed to slower than expected recovery in consumer demand. However, the sequential growth, especially the positive performance in September despite one full week less of sales of the new iPhones, is likely a sign of positive news ahead, the report adds.

Among all smartphone makers, Samsung continued to lead the global market, capturing a fifth (about 20%) of the total sales in Q3. "The new generation of foldables received a mixed response, with the Flip 5 outselling its counterpart by nearly twice as much. However, Samsung’s A-series models remained market leaders in mid-price bands. Apple came in second with a 16% market share despite the limited availability of iPhone 15 series, which has been received well so far," the report adds.

Among others, Xiaomi, OPPO, and vivo rounded off the top five, with the three recording YoY declines at -15%, -10%, and -14%, respectively. "In Q3, all these brands worked towards strengthening their positions in key markets like China and India, while continuing to slow down expansionary efforts in overseas markets."

HONOR, Huawei, and Transsion Group gained a share and were among the only brands to record YoY growth in Q3. "Huawei grew driven by the launch of the Mate 60 series in China, while HONOR’s growth was led by strong overseas performance. Transsion brands continued to expand while also benefiting from the recovery in the Middle East and Africa (MEA) market," the report adds.

Among the regions, the Middle East and Africa was the only region to record YoY growth in Q3, owing to improvements in macroeconomic indicators. "Most developed markets, like North America, Western Europe, and South Korea, recorded steep declines. However, we expect most developed markets to grow in Q4 largely due to the delayed effect of the iPhone launch," says Counterpoint Research.

In Q4 2023, the market is expected to halt its series of YoY declines as following a strong September, the momentum is expected to continue till the year-end. It will see the full impact of the "iPhone 15 series, along with the arrival of the festive season in India, followed by the 11.11 sales event in China and ending with the Christmas and end-of-year promotions across regions".

For the full year 2023, however, the market is expected to decline further, reaching its "lowest level in the decade" largely due to a shift in device replacement patterns, particularly in developed markets. "Notably, the recovery of emerging markets before the global market and the growth of brands outside of the top five indicate the shifting dynamics and opportunities in the global smartphone market," the report says.