Rising from the Slump: Global Smartphone Sales Surge in October, Ending a 2-Year Decline, According to Counterpoint

Tech / Sunday, 26 November 2023 18:18

"October Ignites Global Smartphone Sales Rebound, Ending 27-Month Decline: Counterpoint Research"

In a remarkable turnaround, global smartphone sales saw a significant upswing in October, breaking free from a continuous 27-month decline on a year-on-year basis, as reported by Counterpoint Research. The resurgence was prominently fueled by a robust recovery in emerging markets. Sell-through transactions, indicative of retail sales volumes, witnessed a noteworthy 5% year-on-year growth in October, according to the research findings.

Counterpoint Research attributed this growth surge to the sustained recovery in the Middle East and Africa, the resurgence of Huawei in China, and the onset of the festive season in India. Developed markets, characterized by relatively higher smartphone saturation, experienced a more gradual recovery, the report noted. Huawei notably recorded the fastest growth among smartphone manufacturers in China during the third quarter, driven by the consumer interest sparked by the release of its Mate 60 Pro smartphone in September, featuring an advanced chip.

The month of October marked the highest monthly smartphone sales since January 2022, with the launch of Apple's iPhone 15 series in late September contributing significantly to the uptick. Counterpoint Research highlighted that the delayed launch, compared to the previous year, meant the full impact of the new iPhone sales was felt in October.

The global smartphone market had been grappling with challenges such as component shortages, inventory build-up, and longer replacement cycles, compounded by an uncertain macroeconomic environment. Counterpoint Research observed a continuous year-on-year decline in global smartphone sales for more than two years. However, signs of improvement were noted, with Canalys reporting a slowing decline in global smartphone sales, falling just 1% in the third quarter compared to a 10% decline in the previous quarter.

Samsung maintained its position as the leader in the global smartphone market during the third quarter, commanding a 20% share of total smartphone sales, according to Counterpoint Research. Apple followed with a 16% market share, while Chinese brands Xiaomi, Oppo, and Vivo secured 12%, 10%, and 8% respectively.

Looking ahead, Counterpoint Research anticipates further growth in the global smartphone market in the fourth quarter. Buoyed by the robust performance in October, the market is expected to continue its year-on-year growth in the last quarter of 2023, setting the stage for a gradual recovery in the subsequent quarters.

"In conclusion, the resounding resurgence in global smartphone sales during October, after enduring a challenging 27-month downturn, signals a promising shift for the industry. Counterpoint Research's data underscores the pivotal role played by emerging markets, Huawei's resurgence in China, and the strategic timing of product launches during the festive season. While challenges like component shortages and prolonged replacement cycles persist, the momentum generated in October, amplified by the successful entry of Apple's iPhone 15 series, hints at a positive trajectory for the global smartphone market. As we enter the fourth quarter, the forecasted growth by Counterpoint Research not only signifies a continuation of this upward trend but also sets the stage for a gradual and sustained recovery in the quarters to come. The industry's adaptability and consumer demand for innovative offerings, especially in emerging markets, emerge as key drivers, inspiring optimism for a reinvigorated era in the global smartphone landscape."