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Worldwide Device Shipments to Decline 4% in 2023
The depressed economic market will continue to dampen demand for devices throughout 2023. In fact, end-user spending on devices is projected to decline 5.1% in 2023. Experts say, iust as business confidence was beginning to recover after the worst of the pandemic, it has now fallen significantly in most regions. We do not expect relief from inflation and the bottom of the recession to occur until the fourth quarter of 2023.
The downward trend affecting the devices market will lessen in 2023 on the expectation of a less pessimistic economic outlook through 2023, eventually increasing consumer and business spending.
Secondly, PC shipments will continue to record the worst decline of all device segments in 2023. PC shipments are estimated to decline 6.8% in 2023, after a 16% decline in 2022.
Through 2023, PC vendors will reduce inventory levels and Gartner analysts expect PC inventory levels will return to normal by the second half of 2023 after significantly increasing in 2022. “Inventory levels increased due to vendors overestimating market demand and because of the collapse in consumer confidence and dramatic fall in demand,” say experts.
In 2022, while many business PCs could upgrade to the Windows 10 operating system), many did not. By the end of 2023, Gartner expects more than 25% of business PCs will upgrade to Windows 11. However, Windows 11 will not drive enough sales to reach the same volumes seen between 2020 and 2022. In addition, as high inflation rates and impending recession decrease discretionary spend and budgets, Gartner estimates consumers and businesses will extend their PC and tablet replacement cycles by over 9 months by the end of 2023.
Gartner forecasts worldwide smartphone shipments to decline 4% in 2023. Smartphone shipments are projected to total 1.230 billion units in 2023, down from 1.280 billion units in 2022.
At the same time, consumers are holding onto their phones longer than expecBy VARINDIA | 231 views
India’s smartphone shipments drops
Falling demand is causing great concern for the entire smartphone supply chain. While component supplies and cost pressures are easing, a few concerns remain within logistics and production, such as some emerging markets’ tightening import laws and customs procedures delaying shipments. Deep collaboration with channels to monitor the state of inventory and supply will be vital for vendors to identify short-term opportunities while maintaining healthy channel partnerships in the long run.
The global smartphone shipments fell by 17 per cent (year on year) in Q4 2022, with entire 2022 shipments declining by 11 per cent to fewer than 1.2 billion, a new report has shown. Despite shrinking demand and manufacturing issues in China’s Zhengzhou, Apple reclaimed the top spot in Q4 and achieved its highest quarterly market share ever at 25 per cent, as per Canalys.
At the same time, Samsung took the number one spot in the fourth quarter for the first time since Q3 2017, shipping 6.7 million units for a market share of 21 per cent. The second place went to vivo, which shipped 6.4 million units, mainly via offline channels. India was better positioned to weather the global downturn than other markets. But domestic consumer spending cooled in the last few months of 2022.
Even during the festive season, the domestic market suffered a fall in transactions, retail spending and electronic imports. In 2022, consumers already had up-to-date technology that they had bought during the pandemic, thereby delaying further purchases. This led to smartphone brands struggling with inventory management because demand was subdued, say analysts.
The Indian economy started to feel the impact of the global economic slowdown toward the end of 2022. We are entering 2023 with economic indicators suggesting a sluggish performance in the short term.
But, in 2024, India is set to hold its general election and the government's strategy will be to boost conBy VARINDIA | 104 views
Supply chain issues to impact India’s smartphone shipments in Q4, says IDC
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Impact of Supply chain on Smartphone shipments
The ongoing October-December quarter is expected to see a decline in smartphone sales in the country due to the ongoing supply chain related challenges, resulting in annual shipments below 160 million in 2021, as the report from IDC and the first half of 2022 will remain challenging, with some easing out expected in the latter half of 2022. Vendors/channels will keep an eye on the over-stocking situation in case demand stays limited due to the price hikes by the suppliers and vendors. IDC reveals that, India’s smartphone market registered a year-over-year (YoY) decline of 12% in 3Q21 (Jul-Sep), shipping 48 million units after four consecutive quarters of growth. Much of this can be attributed to component shortages as well as an unusually high 3Q20 comparison base whereas this year’s post-lockdown demand was addressed by July.
During the July-September quarter, the online channels clocked a record high 52% share, although with a 5% YoY shipment volume decline. At the same time, the eTailer sales festivals such as the Big Billion Days on Flipkart and Amazon Great India festival started in early October, even before the Navratri festival this year, continuing until Diwali. Whereas, the offline channels registered an 18% YoY shipment decline. IDC expects online shipments to surpass offline shipments in 2021. The report further says that India was the third-largest 5G smartphone market globally, with 7% of worldwide 5G shipments shipping 10 million units at an ASP of US$401 in 3Q21. IDC believes that a growing dependency on smartphones is triggered by remote work and learning, as well as a subsequent requirement for better quality hardware is pushing consumers to spend more. With continued chip shortages and logistics costs, brands are also compelled to expand upwards in terms of price points across channels,” said the experts of IDC. A report from CounterpoBy VARINDIA | 90 views
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