Samsung edged out Apple with a slight 1% lead to secure the top spot in smartphone shipment volumes for the first quarter of 2023, despite the ongoing contraction of the smartphone marketaccording to a new report.
The South Korean electronics giant shipped a total of 60.6 million units, narrowly beating Apple’s 58 million in the quarter ending in March, according to research firm Counterpoint. The overall smartphone market saw a year-on-year decline of 14% and a quarter-on-quarter drop of 7%, resulting in a total of 280.2 million units shipping in the first quarter of 2023, the Hong-based firm said. Kong in a report. .
At the same time, revenue fell 7% year-over-year, hitting a record low of $104 billion. While Samsung took the lead in shipping volumes, Apple maintained a dominant first quarter in terms of operating profit, securing a substantial 72% lead over Samsung. The iPhone maker also captured half of the market’s revenue, holding a 31% lead over its South Korean competitor, Counterpoint added.
Jeff Fieldhack, Counterpoint’s research director, attributed Apple’s resilient performance to the enduring loyalty of its customer base. The company’s thriving ecosystem discourages consumers from seeking less expensive alternatives, while its strong presence in the refurbished market: represent more than 50% of the sector – bolsters their performance, he said.
“Apple is able to weather economic and other fluctuations better than its rivals while enjoying unwavering loyalty. This also meant that Apple was able to meet the demand for the iPhone 14 series that spilled [sic] during the fourth quarter of 2022, when it ran into trouble at its Zhengzhou factory, rather than have that stake dissipate or be transferred to rivals,” Fieldhack said.
Counterpoint projections align with Recent Canalys Findingsanother research firm.
Apple officially echoed some of this performance on Thursday, disclosing in quarterly earnings that sold $51.3 billion worth of its branded devices in the quarter ending March.
But the road ahead is likely to remain difficult. For a variety of reasons, we could see a few more quarters of decline, according to Counterpoint analyst Tarun Pathak.
“The persistent problems plaguing the smartphone market are unlikely to abate anytime soon. In addition, the recent decision by the OPEC countries to reduce oil production may lead to higher inflation rates, which would cause a reduction in the purchasing power of consumers,” he said.
The industry-wide downturn has had a notable impact on the financial results of numerous major players in the smartphone market. The latest result from Samsung Mobile Division suggested its revenue fell 2% year-over-year. Meanwhile, Samsung as a company, registered a 95% drop in profits due to sluggish demand for chips.
Earlier this week, the chipmaker Qualcomm shares fell after it revealed a 17% year-over-year decline in smartphone processor sales.
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