Because cell phone sales suffered the biggest decline in their history

Worldwide sales of mobile phone are experiencing an unprecedented decline. According to data from the consultancy International Data Corporation (IDC), smartphone sales fell by 18.3% in the fourth quarter of 2022, a collapse that not even the holiday season could save.

Despite the downturn in the tech sector, the disappointing data surprised analysts. Nabila Popal, director of research for IDC’s Worldwide Tracker team, said she has never seen before “that sales in the last quarter of the year are lower than beforebut lower demand and high inventories have forced producers to drastically cut production.”

The fall suffered by the sector is largely motivated by the economic uncertainty that is going through the world. Added to this are the problems in the production chain and the lack of supply of parts and components. All of this was a bang for an industry that was counting on the holiday season sales to bounce back.

The period of 2022 closed with a general drop of 11.3% in the number of handsets sold. Sellers have been forced to be more conservative with their orders and consumers are trying new purchasing alternatives, such as phone leasing, which involves renting the latest models. in exchange for paying a monthly fee.

Apple, dominant player

Apple tech, which usually remains strong in the face of these market shocks, also underperformed. iPhone sales are down nearly 15%, according to data from the consultancy firm; were sold ten million less than in the same period of the previous year, in particular a total of 27 million devices.

The 2022 period closed in decline 11.3% in number of terminals sold.

In the case of the Cupertino company, the decline is not due so much to a lack of demand, but to the shutdown of its production plants in Shenzhen following a major coronavirus epidemic, which has affected the production of the iPhone 14 Pro . .

A few days before the start of the Christmas period, the company’s stores had already let it be known that practically all of its models were sold out. no deliveries available until mid-January.

the rest of the market

In the case of Xiaomi, the data is devastating; Sales decline was 26.3%, and nearly everything sold matches prior quarters’ inventory offerings.

Anthony Scarsella, director of research at IDC, assures that this “will be a year in which prudence will prevail. Manufacturers will have to reevaluate their catalogs and the channel will think twice before taking on excess stock. The positive note is that the better offers.”

According to the consultant’s estimates, the period corresponding to 2023 is expected to end with a 2.8% increase in the number of phones sold. The strong crisis is affecting all telephone companies, with the technology sector being the most affected. The lack of stock reduces the supply and the demand decreases by itself due to the evident decline in the market.