The mobile telephony market falls and with it all the giants of the sector, which have lost revenues and profits except one
It was already warned with previous IDC reports and now they are the experts of Contrapuntal research those who confirm the news: the mobile phone market is still in a recession and only Apple is escaping the burn (no, not even Samsung…).
And is that despite the fact that Samsung and Apple appeared to be the only ones to back up their sales figures in an environment of widespread falls, as our classmates told us Android Authority it seems that only the Cupertino giant grows in turnover after announcing results for the last completed quarter of 2022.
is being a very difficult year for the mobile telephony sectorin a scenario of possible economic recession, with the pandemic still raging in some Asian countries where the “zero Covid” strategy is causing massive closures, and in recent months with geopolitical tensions triggered by trade battles between China and the United States or by the war between Russia and Ukraine that has come accelerate huge inflation in virtually all markets driven by energy dependence.
With the entire industry falling apart around them, in Cupertino they are celebrating that their iPhone numbers are still green, increasing both the operating profit and the average selling price of their smartphones.
The Counterpoint study says so global revenue in the smartphone market decreased by 3% year over year in the third quarter of 2022, wiped out by a massive drop of up to 12% year over year in sales if we look at figures extrapolated worldwide.
Everything could have been worse, however, and that was it there is one manufacturer (obviously Apple) that keeps its numbers in the green once again and despite the negative environment around him.
Cupertino’s Giant launched its iPhone 14 just this quarter helping to compose the figures for the entire sector, also a 10% year-on-year revenue growth thanks to an average selling price which in his case increased by at least 7%.
Share of operating profit by manufacturer in the mobile sector, updated as of Q3 2022. (Counterpoint)
As for your competitors, SAMSUNG it has seen its average selling price grow less, a modest 2%, despite this has doubled sales of its Galaxy Z foldables compared to last year. In any case, its revenue was down 4% year-over-year.
OPPO also falls with a crashnothing less than 27% of income and 5% of the average selling price, and so on despite having integrated those of OnePlus into its figurescertainly dragging these numbers due to the problems in China caused by new waves of coronavirus.
Xiaomi is the other positive, albeit much more modest, since its revenue is growing 4% year-over-year thanks to the sales of smartphones in the most affordable price ranges. And is that indeed its cell phone shipments of over $300 were down 1.5%, while they’ve grown a lot in the $200 to $299 rangealso increasing the average selling price by 14% on an annual basis.
The report also mentions this sales of smartphones with 5G connectivity managed to increase the average price by 10%although this is also due in part to the fact that Apple has made it to 5G and their iPhones are all cut up prize:
At more than $80 billion, the revenue contribution of 5G phones reached an all-time high of 80% of global revenue, up from 69% in the third quarter of last year. During the same period, the revenue contribution of 4G LTE phones fell 10% to $19 billion. This technology shift from 4G to 5G has been spearheaded by Apple, which alone accounts for more than half of all 5G revenues with more than 95% of its phones being 5G-enabled.
Effects no doubt a collapsing economy where upgrading smartphones is no longer such a priority, also counting on a huge price increase that It has reduced the purchasing power of households and that will certainly continue to complicate us for many more quarters, in addition to the saturation already seen in emerging markets such as China and India.
We will see how events unfold in the coming months, but looking at Apple’s numbers it is clear that if anyone escapes the crisis it is the richest people… As always!
