According to market research carried out by Counterpoint, the US smartphone market shrunk by a whopping 24% year-over-year in Q2 this year. That doesn’t come as a surprise since this is the third consecutive quarter with declining sales.
Manufacturers like Samsung, Motorola and TCL-Alcatel saw the biggest decline in shipments. Samsung’s shipments fell 37%, Motorola’s by 17% and TCL-Alcatel’s by 69%. Interestingly, Apple’s shipments shrunk by just 6% despite the bleeding smartphone market, so expectations for the upcoming iPhone 15 series remain bullish, analysts say. Google was the only one that increased its shipments by 48%, although it didn’t have much, to begin with.
When the dust settled, Apple is leading the market with 55% share, Samsung coming in second with 23% and Motorola taking the third place with 9% market share for Q2 2023.
In stark contrast to the overall market conditions, foldables are performing excellently, mainly thanks to the new competition – it’s not just Samsung anymore. Motorola introduced its Razr 40 and 40 Ultra and Google released its first Pixel Fold. With the release of the new Samsung Galaxy Z Fold5 and Z Flip5, the foldable market is expected to reach new highs next quarter.
Analysts blame the recent economic turmoil for the declining smartphone market. People are just hesitant to upgrade and they expect the low upgrade rates to persist throughout Q3.