Transsion has moved to the fifth position in the world smartphone market during the second quarter of 2023, according to the latest report from IDC and Canalys.
Transsion has shipped 25.3 million smartphones for 9.5 percent market share in Q2 2023. Transsion had 6.5 percent share by shipping 18.8 million smartphones during the second quarter of 2022, according to IDC.
As the market ramps back up, there is also an opportunity for smartphone vendors to gain market share. Notably, Transsion, a prominent player, entered the Top 5 vendor rankings for the first time this quarter, indicating a potential shift in the competitive landscape, IDC’s research director, Nabila Popal, said.
According to Canalys report, Transsion has shipped 22.7 million smartphones for 9 percent market share in Q2 2023.
Transsion, which sells Tecno smartphones, rapidly captured the pent-up low-end demand in the Middle East and African markets where the stabilizing foreign exchange also supported channel partner confidence. Additionally, its expansion in Latin America in the past few quarters has allowed the vendor to capture low-end demand in some under-penetrated markets, Amber Liu, Analyst at Canalys, said.
The other leading smartphone makers in Q2 2023 are: Samsung (53.5 million for 20.2 percent share); Apple (42.5 million for 16 percent); Xiaomi (33.2 million for 12.5 percent); OPPO (25.4 million for 9.6 percent), according to IDC.
Smartphone Shipments Show Signs of Recovery Amidst Ongoing Challenges
Worldwide smartphone shipments reached 265.3 million units in the second quarter of 2023 (2Q23), marking a 7.8 percent year-over-year decline.
This eighth consecutive quarter of contraction comes as the smartphone market continues to grapple with various challenges, including soft demand, inflation, macroeconomic uncertainties, and excess inventory. However, there is a glimmer of hope as the rate of decline appears to be slowing compared to previous quarters.
Inventory levels are improving, and the latest market chatter suggests that excess inventory in finished devices and components should clear up by Q3. This positive development is sparking hope that the phone market will return to growth by the end of 2023 and into 2024.
IDC said China, which has faced significant challenges in the past, saw a more modest decline of 2.1 percent in 2Q23 after five consecutive quarters of double-digit contractions. Despite this improvement, consumer sentiment and spending in China remain low. Even the highly anticipated 618 online shopping festival in June, which was expected to boost sales, saw a 6.5 percent drop in smartphone sales in China.
The situation was not much different in other major regions. Asia Pacific, the United States, and Europe, the Middle East, and Africa (EMEA) all experienced declines in smartphone shipments during 2Q23, with drops of 5.9 percent, 19.1 percent, and 3.1 percent, respectively.
Anthony Scarsella, research director of Mobile Phones at IDC, emphasized that despite the challenges faced during the first half of the year, there are opportunities for growth in the second half. The foldable smartphone market, in particular, holds promise as new models and vendors enter the race, potentially leading to wider adoption and lower prices. IDC predicts that the foldable market will see substantial growth of nearly 50 percent in 2023, even as the total market continues to face challenges.
As the global smartphone industry continues to navigate uncertain times, smartphone manufacturers are hopeful that improving inventory levels, advancements in technology, and growing interest in innovative devices will drive the market towards growth in the coming months and beyond.