The global smartphone market has been grappling with the challenges posed by an ongoing economic downturn, resulting in a sustained decline in its performance. Tecno, Infinix beat Vivo to secure 5th spot among global smartphone market.
Data from TrendForce reveals a significant downturn, with a nearly 20% drop in Q1 followed by a 6.6% decrease in Q2 of this year.
The year 2023 has begun on a rather gloomy note, with a combined production of 272 million smartphones in Q2 and Q1, resulting in a total of 522 million units manufactured during the first half of the year. This reflects a notable 13.3% decrease compared to the same period in 2022.
Tecno, Infinix, and Vivo
However, amidst these difficulties, there have been some surprising outcomes in the smartphone industry. Transsion, a conglomerate consisting of Tecno, Infinix, and Itel, has made a significant move by replacing Vivo to become the world’s fifth-largest phone maker.
This achievement of Tecno can be attributed in part to Transsion’s expansion into the mid-to-high-end market segment, with a remarkable 71.9% surge in production when comparing Q1 and Q2 figures.
On the other hand, Vivo (including Vivo and iQOO) slipped to the sixth position, achieving a relatively modest yet positive increase of 15%, totaling 23 million units—still trailing behind Transsion’s 25.1 million units.
As for the giants of the industry, Samsung, despite a 12.4% decline from Q1, remains in the lead by producing 53.9 million units, capturing a market share of just under 20%. The introduction of the new Galaxy Z foldables in Q3 is anticipated to influence the market, but the lackluster sales of the Galaxy S23 series may limit its impact.
Apple, traditionally facing its weakest quarter in Q2, is poised for uncertainty in Q3 due to production challenges for the new generation iPhone. TrendForce suggests that Apple could potentially surpass Samsung and secure the top spot if the iPhone 15 series exceeds expectations.
Xiaomi has experienced a notable 32.1% production increase compared to Q1, resulting in a total of 35 million units produced across Xiaomi, Redmi, and Poco phone lines. This growth has allowed Xiaomi to surpass its rival Oppo and claim third place in the rankings.
Oppo, including Oppo, Realme, and OnePlus phones, slipped to fourth place despite a 25.4% quarter-on-quarter production increase, yielding a total of 33.6 million smartphones manufactured. The company’s strong performance in Southeast Asia and other markets is expected to continue in Q3, setting the stage for a competitive race with Xiaomi.
Looking ahead, the first half of 2023 marks the lowest point in global smartphone production over the past decade. The outlook for the upcoming year remains uncertain, with TrendForce projecting only a minor 2-3% annual increase in the industry.