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Cell phones close the year with fewer sales and only two brands are saved from the fall

Factory-to-retail shipments fell 12% year-on-year globally.

Despite the fact that the world seems to be resurfacing after the coup of the Covid, for some industries this was not a good year. This is the case of consumer technology, which had a 2022 with massive layoffs in the sector, a drop in the price of the shares of large companies and fewer product sales, especially of cell phones.

It is that beyond the crisis and global inflation, mobile phones are increasingly expensive and they differ very little from each other. There are virtually no technological advantages between a $350,000 phone and a $150,000 phone.

This combo resulted in a remarkable drop in cell phone sales globallyas reported by the consultant Counterpointwhich offers numbers of the debacle, but highlights that two companies have been saved.

Apple and Xiaomi are the ones that knew how to withstand the 2022 blow. They are the only ones that experience year-on-year growth in revenue, according to the same consultant. While Samsung, OPPO and Vivo fall.

The cake is shared with a Manzana who stays with more than 40% of the market, followed well away by Samsung with about 20%. The Chinese Xiaomi is now closer to the Korean firm, with a little more than 8%.

The Counterpoint Report.

“The Samsung revenue declined 4% year-on-year in the third quarter of 2022, while those of Xiami increased by 4%, pushed by low- and mid-range phones, “stresses the Counterpoint report. In other words, there are fewer and fewer justifications to pay more than $ 250,000 for a high-end

In the specific case of Samsung, the work indicates that the drop in the company’s revenues may be due to the fact that it focused more on the sale of its Flip and Fold foldables, than on the more expensive Galaxy 22.

The report also argues that “global mobile phone revenues declined 3% year-on-year despite a subdued market in which shipments fell 12% year-on-year. A steeper revenue decline was avoided thanks to Apple’s 10% year-over-year revenue growth.”

The case of Apple in 2022

With its iPhone 14, Apple continues to lead.  Photo: Reuters

With its iPhone 14, Apple continues to lead. Photo: Reuters

“Apple experienced 10% year-over-year revenue growth and 7% year-over-year average sales price growth in Q3 2022, contributing to an overall increase. This is partly due to the launch of the iPhone series 14, as well as the pro modelsespecially from the previous generation, which work well, ”explained the analyst Harmeet Singh Walia.

Commenting on the effect of 5G on the growth of the average selling price of the devices, the expert said: “At more than $80 billion, the revenue contribution of 5G phones reached an all-time high of 80% of revenue. global phone companies, up from 69% in the third quarter. from last year”.

“In the same period, the revenue contribution from LTE phones fell 10% to $19 billion. This shift from 4G to 5G has been led by Apple, which alone accounts for more than half of all phone revenue. 5G, as more than 95% of their phones are 5G-enabled.”


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