Smartphone market revenue falls 3% in Q3

According to a report by Counterpoint Research, the global smartphone market revenue fell 3% year-over-year to $100 billion in the third quarter of 2022 even as the average selling price (ASP) grew 10% during the same period.

The record shipment contribution (46%) of 5G handsets, which cost five times an average non-5G handset, also added to the ASP and revenue growth. It said that the overall handset market saw a 12% year-over-year decline in shipments during the July-September quarter.

Apple saw a 10% YoY revenue growth and 7% YoY ASP growth in Q3 2022. Samsung saw a modest 2% year-over-year increase in ASP in Q3 as well as a 27% YoY revenue growth of its 5G smartphones. Consequently, Samsung’s revenue declined 4% YoY in Q3 2022.

Xiaomi’s handset revenue grew 4% YoY, a significant portion of which came from the low-to-mid price bands. The shipment share of the over-$300 price band declined by close to 1.5%. However, there was a significant shift from the sub-$200 to $200-$299 price band. Consequently, Xiaomi’s ASP grew 14% YoY to $205.

Senior Analyst Harmeet Singh Walia said, “At over $80 billion, the revenue contribution of 5G handsets reached an all-time high of 80% of global handset revenues, up from 69% in the third quarter of last year. In the same period, LTE handsets’ revenue contribution fell 10% to $19 billion. This shift from 4G to 5G has been led by Apple, which alone makes up for over half of all 5G revenues as over 95% of its phones are 5G-enabled.”