Apple's new iPhone 14 series, launched in September, is expected to lift smartphones sales in the fourth quarter, according to Counterpoint Research. Photo: Antonie Robertson / The National
Apple's new iPhone 14 series, launched in September, is expected to lift smartphones sales in the fourth quarter, according to Counterpoint Research. Photo: Antonie Robertson / The National
Apple's new iPhone 14 series, launched in September, is expected to lift smartphones sales in the fourth quarter, according to Counterpoint Research. Photo: Antonie Robertson / The National
Apple's new iPhone 14 series, launched in September, is expected to lift smartphones sales in the fourth quarter, according to Counterpoint Research. Photo: Antonie Robertson / The National

Global smartphone shipments hit 8-year low in third quarter


Alvin R Cabral
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Global shipments of smartphones dropped to their lowest level in eight years in the third quarter as geopolitical factors affecting the global economy continued to subdue market demand, according to a study by Counterpoint Research.

The 12 per cent fall to about 301 million units in the three months through September was the steepest decline since the third quarter of 2014, the Hong Kong-based market data company said in its quarterly update on Friday.

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Russia’s military offensive in Ukraine, tensions between the US and China, stubbornly high inflation, recession worries and weakening currencies further dented demand that had already weakened in the previous quarters, it added.

The overall smartphone sector is also being affected by longer replacement cycles as devices are becoming more durable and technological advancements are slowing down, Harmeet Walia, a senior analyst at Counterpoint, said in the report.

“This is accompanying, and to a smaller degree advancing, a fall in the shipments of mid- and lower-end smartphones, even as the premium segment weathers the economic storm better,” he added.

“Consequently, and thanks to an earlier launch of the latest iPhone series this year, Apple emerged as the only top-five smartphone vendor to manage annual shipment growth in the quarter.”

Smartphone shipments were boosted by a slight recovery from Samsung Electronics and Apple, the world's largest mobile phone makers, helping to push them above the 300-million mark in the third quarter.

In the second quarter of this year, shipments dipped below that level — the first time since the onset of the Covid-19 pandemic in 2020.

However, the sector is on track for another annual decline: in the first nine months of this year, smartphone shipments hit about 921.9 million and are unlikely to surpass 2021's 1.39 billion units, which marked the first positive growth since 2017.

The Covid-19 pandemic triggered disruptions in supply chains owing to widespread lockdowns that lasted for months, resulting in parts shortages that affected smartphone makers.

The market, however, is recovering gradually.

The Samsung Galaxy Z Flip 4 and Samsung Galaxy Z Fold4, which were launched in August, saw record pre-sales. Victor Besa / The National
The Samsung Galaxy Z Flip 4 and Samsung Galaxy Z Fold4, which were launched in August, saw record pre-sales. Victor Besa / The National

California-based Apple, which launched its new iPhone 14 line-up last month, was the only top manufacturer to improve in the third quarter, with shipments up 1.7 per cent to 48.8 million, from 48 million a year earlier.

South Korea's Samsung, the world's biggest smartphone manufacturer, saw its shipments decline 7.6 per cent annually to 64 million units, from 69.3 million. The company launched its new Fold and Flip smartphones in August, which posted record presales.

Compared with the previous quarter, third-quarter shipments of Apple and Samsung grew 5 per cent and 2.5 per cent, respectively, helping the market recover, Counterpoint data showed.

Chinese manufacturers Xiaomi, Oppo and Vivo retained their places in the top five, but all of three recorded year-on-year declines. Xiaomi dropped about 9 per cent, while Oppo — which includes OnePlus sales — and Vivo both fell 23 per cent.

Shipments are unlikely to reach last year’s levels, let alone pre-pandemic fourth-quarter levels of over 400 million units
Jan Stryjak,
associate director at Counterpoint Research

While an increase is expected in the fourth quarter — mainly due to Apple's new iPhones and the holiday season — demand is expected to remain sluggish in the first half of 2023, with lengthening replacement rates expected to continue affecting the sector, said Jan Stryjak, an associate director at Counterpoint.

However, he warned that central bank interest rate hikes to tame inflation will likely affect consumer demand.

“Hence, shipments are unlikely to reach last year’s levels, let alone pre-pandemic fourth-quarter levels of over 400 million units.”

Company Profile
Company name: OneOrder

Started: October 2021

Founders: Tamer Amer and Karim Maurice

Based: Cairo, Egypt

Industry: technology, logistics

Investors: A15 and self-funded 

 

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- average salary across curriculums and skill levels is about Dh10,000, recruiters say

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There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:

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  2. Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc. 
  3. Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway. 
  4. Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
  5. Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.

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Yahya Al Ghassani's bio

Date of birth: April 18, 1998

Playing position: Winger

Clubs: 2015-2017 – Al Ahli Dubai; March-June 2018 – Paris FC; August – Al Wahda

The specs: 2018 Chevrolet Trailblazer

Price, base / as tested Dh99,000 / Dh132,000

Engine 3.6L V6

Transmission: Six-speed automatic

Power 275hp @ 6,000rpm

Torque 350Nm @ 3,700rpm

Fuel economy combined 12.2L / 100km

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Nickname: Mama Nadia to children, staff and parents

Education: Bachelors degree in English Literature with Social work from UAE University

As a child: Kept sweets on the window sill for workers, set aside money to pay for education of needy families

Holidays: Spends most of her days off at Senses often with her family who describe the centre as part of their life too

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Updated: October 29, 2022, 5:00 AM