Shipments of smartphones have declined since a few years ago. The results for the most recent quarter are in, and they don’t look good. The statistics show that last quarter’s smartphone shipments were down 9% year over year (via Canalys ).
It’s no secret that the tech sector is currently under a chokehold. Supply chain problems, the residual consequences of the Coronavirus pandemic, and a faltering economy are currently plaguing tech companies. The quantity of phones that can be put on shelves is being badly impacted by this.
Shipments of smartphones have decreased by 9% annually since Q2 2021. Shipments of smartphones have fluctuated over the past few years as the world economy attempts to recover. Companies can’t produce as many phones as they would like. That puts a stop to the whole thing.
Advertisement Additionally, folks simply can’t purchase phones like they used to. People who once purchased the most expensive flagships now have to make do with mid-range models. People who formerly used mid-range phones now have to buy cheap phones. Companies can now concentrate more on mid-range gadgets because of this available market. The flagship phones continue to go unsold throughout this time, building up in warehouses.
Such a problem would more severely impact Apple and Samsung than other businesses. These two firms produce much more flagship phones since they sell so many of them.
One terrible aspect of this situation is that while phone costs appear to be rising everywhere, average yearly incomes appear to be stagnant or declining. For instance, the Galaxy Z Flip 4 and Galaxy Z Fold 4 are anticipated to cost $50 and $100 more than their forerunners, respectively. These $1,000 phones look less and less appealing as the economy worsens.
Advertisement According to Canalys, companies will need to alter their strategy moving ahead if they want to prevent further market losses.