Smartphone Market Sees 1% Drop in Q3 2023, Samsung and Apple Lead the Way: Canalys

The global smartphone market experienced a modest decline of 1 percent in the third quarter of 2023, totaling 293.4 million units, Canalys said. This dip can be attributed to vendors introducing new models after a period of healthy inventory levels in the preceding quarter.
Canalys report on Q3 2023 smartphone marketSamsung has retained its top spot as the leading smartphone vendor, shipping 57.4 million units and commanding a formidable 20 percent market share. Their early update of foldable devices played a pivotal role in securing this position.

Apple closely followed in second place, shipping 50.0 million units, and gaining a 17 percent market share. The robust demand for the iPhone 15 series, equipped with a USB-C upgrade, significantly contributed to Apple’s success.

Xiaomi secured the third position, shipping 41.5 million units and achieving a notable annual growth of 2 percent, largely due to its strong performance in emerging markets.

OPPO, including OnePlus, claimed the fourth position with 26.4 million units shipped and a 9 percent market share.

The TRANSSION Group, encompassing Tecno, Infinix, and iTel brands, maintained its fifth position, with 26.0 million units shipped.
Canalys report on growth in smartphone market in Q3 2023“Rising demand for fresh offerings in emerging markets is propelling brands and channels forward as the holiday season approaches,” Sanyam Chaurasia, Senior Analyst at Canalys, said.

Xiaomi and TRANSSION Group were the only brands among the top five to experience growth. Xiaomi regained momentum in Q3 due to inventory normalization in the first half of 2023 and the launch of the budget-friendly Redmi Number series in emerging markets.

TRANSSION achieved an impressive 40 percent year-on-year growth, largely driven by increased shipments in the core African market.

The global competition for foldable smartphones is set to intensify, with Samsung, OPPO, and OnePlus all making strategic moves in this space. Apple, learning from the demand challenges of the iPhone 14 series, made crucial enhancements to its iPhone 15 and 15 Plus models, resulting in stronger-than-expected volume and bolstering its presence in the high-end market.

The report also highlighted the growing importance of ecosystem integration, with Android brands striving to compete with iOS. In-house operating systems, such as Huawei’s HarmonyOS and Xiaomi’s HyperOS, are playing a crucial role in this regard, promising new revenue opportunities beyond smartphones, including in IoT and electric vehicles.

Looking ahead to 2024, Canalys anticipates modest growth in the global smartphone market. Vendors are expected to close 2023 with healthier inventory levels, enabling them to prepare for potential demand surges. However, regional performance is likely to diverge due to conflicts and geopolitical tensions, necessitating flexibility and adaptability in vendor strategies.