The news: The global smartphone market has been declining for the past five quarters due to the ongoing COVID-19 pandemic, the global chip shortage, and the war in Ukraine, among other factors, per Canalys.
Demand drops: The global smartphone market declined 12% in the first quarter of 2023, as macroeconomic conditions and inflation continued to weigh on demand.
“However, we have noticed some signs of moderation in the continued decline,” Canalys analyst Toby Zhu said. “There have been improvements in demand for certain smartphone products and price bands.”
Why it’s worth watching: Vendors are producing more smartphones than consumers are buying. Many users are holding onto older devices longer.
Our take: Samsung and Apple will continue to push upward in premium devices, possibly creating even more expensive “pro” handsets to fully saturate the high end of the market.
This article originally appeared in Insider Intelligence's Connectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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