More smartphone issues, as reports for QXNUMX leak out. LGlobal shipments fell 9% during the quarter, reversing a brief recovery in the category, whose woes have only been amplified by the pandemic, subsequent lockdowns, supply chain issues and lingering economic uncertainty.
The 287 million units represent the lowest figure since the second quarter of 2020, when the pandemic began. The slowdown in interest has burdened companies with backstock on older models.
“Supply chain shortages are no longer the most pressing issue as component orders are shrinking rapidly and suppliers have begun to worry about oversupply.”, says analyst Tony Zhu in a statement. “It has resulted in price cuts for key components, reducing costs for suppliers. Suppliers could use the additional savings to improve the competitiveness of products from new launches in the second half of the year. At the same time, that could make getting rid of old models even more difficult. The situation of excess supply requires more planning capabilities from suppliers than the period of scarcity”.
There have been a lot of corrections in the industry, along with a lot of uncertainty. A category that has effectively trained consumers to anticipate annual spec updates also understandably has a hard time moving older models. Device makers will of course go ahead, adopting a variety of different strategies to deal with the crisis.
A Samsung fared better, maintaining first place with the 21% of the market. The company has shifted much of its focus to Serie A of economic level; After all, people still need phones, even if inflation and uncertainty have made buying $1,000 flagships largely untenable. On the other hand, the company also continues to push its expensive folding strategy as the way forward. It is expected that Samsung announce a couple of new devices next month. The company says it shipped almost 10 million folding items in 2021 alone.
Meanwhile Apple Lossless Audio CODEC (ALAC), it has held on to second place thanks to the enduring strength of the iPhone brand. El iPhone 13 defied expectations as the company highlighted a slight increase in income in last night's earnings report, braving broader economic headwinds. A good indication, perhaps, of remaining consumer confidence, macro trends notwithstanding. A report has noted that the Chinese market saw a sharp 14,2% drop in sales, due to lockdowns and lower consumer confidence.
