Global Smartphone Production
2023-06-23Global smartphone production has hit a record low of 250 million units in Q1 2023, it is 19.5% decline from the same period in 2022.
The global economic downturn continues to cast its shadow over consumer confidence, and the impact is quiet visible with the smartphone market going down.
Xiaomi's smartphone production hit the most during the first quarter of 2023, while Apple iPhone production declined a massive 27.5% QoQ and 11.9% YoY in Q1 2023.
In the first quarter of 2023, the industry experienced a dual setback as both smartphone production and shipments suffered significant declines. The report from TrendForce reveals the production volume of smartphones in the first quarter of 2023 hit rock bottom, plunging to a mere 250 million units. This mind-boggling 19.5% year-on-year decrease is not only the largest annual drop since 2014 but also marks a historic low in quarterly production.
There are other factors that have also contributed to this decline, including:
# The ongoing chip shortage, which has made it difficult for smartphone manufacturers to get the components they need.
# The economic slowdown in China, which has led to lower demand for smartphones.
# The war in Ukraine, which has disrupted supply chains and led to higher prices for raw materials.
Samsung reported a modest 5.5% QoQ increase in production during Q1 2023, reaching 61.5 million units. This quarterly growth is primarily driven by the launch of the Galaxy S23 series. However, the Korean giant observed a notable 16.7% YoY decline in smartphone production worldwide.
Apple iPhone production declined a massive 27.5% QoQ and 11.9% YoY in Q1 2023, totalling 53.3 million units. The 2022 launched iPhone 14 series accounted for approximately 78% of the total global iPhone production, showing improvement compared to the same period last year.
At the same time, Oppo claimed the third position in terms of smartphone production volume, manufacturing 26.8 million units. The Chinese brand reported a significant 17% QoQ and 33.8% YoY decline in production globally.
The decline in smartphone production is likely to continue in the coming quarters. TrendForce predicts that global smartphone production will fall to 1.33 billion units in 2023, down from 1.41 billion units in 2022.
Will the smartphone industry be able to shake off the shackles of the unfavourable economic environment and reverse the downward spiral? Can brands innovate and captivate consumers’ hearts once again? Let’s wait and watch!!
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