In a business context, commodity is typically used to describe a product or service where differential advantage is difficult to achieve, and as such pricing is the sole determinant in terms of the customer’s purchase decision. If this were not enough, Samsung, an investment community’s favorite, launched an aggressive price war in the third quarter of last year, which continues unabated now 6 months later into the second quarter of 2020.Īs the saying goes “Price wars in a commodity business are really dumb.” All of which begs the question, is this a commodity business? or has Korean company become smitten with a strategy that, is less than smart.
Ad wars for the smartphone market series#
Samsung launched A series model in 2019, Samsung has managed to defend and growth both its global and local share in the market versus Infinix, Xiaomi, Tecno & Huawei as now being at price point of all 4 brands with a stronger brand equity & 2 years warranty claim.
And while the current state of the economy is always mentioned as a contributor, analysts seem worried about something greater: Price Wars. Sub-Saharan growth is barely up and could easily decline. IDC believes the market will return to growth in 2021 with volumes up by 6.3% mostly driven by the accelerated launch of new devices and 5G plans picking up from the damage of the pandemic. The International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker forecasts worldwide smartphone shipments to decline 2.3% in 2020 to 1.339 billion units, down from 1.372 billion in 2019.
vivo and OPPO ended the quarter tied* for the fourth position with 8.7% and 8.6% share respectively.Due to the COVID-19 outbreak, the worldwide smartphone market is expected to decline again in 2020. Apple came in second with 15.6% share, while Xiaomi came in third narrowing the gap at 13.8% share. Samsung held the top spot with 21.8% share and healthy growth in all regions except Europe. All other regions, except Canada, saw low-to-mid single digit declines.ĭespite the challenging environment, vendor positioning was not altered much during 2Q22. Asia/Pacific (excluding Japan and China) (APeJC), which accounts for nearly half of all shipments worldwide, also declined 2.2% in 2Q22. However, from a volume standpoint, CEE only accounts for 6% of global shipments, so the biggest draw down on global volumes came from China, which declined 14.3% year over year. We continue to believe that any reduction today is not demand that is lost, but simply pushed forward."įrom a regional standpoint, the largest second quarter decline was in Central and Eastern Europe (CEE), as expected, with a 36.5% year-over-year drop as the war in Ukraine continues to hamper the region. Although we do expect demand to start picking up in some regions towards the end of the year, the outlook for the 2022 smartphone market will definitely be revised down a few points. OEMs have cut back orders for the rest of the year with Chinese vendors making the biggest cuts as their largest market continues to struggle. "While supply improved as capacity and production was ramped up, roaring inflation and economic uncertainty has seriously dampened consumer spending and increased inventory across all regions. "What started out as a supply-constrained industry earlier this year has turned into a demand-constrained market," said Nabila Popal research director with IDC's Worldwide Tracker team.
This marks the fourth consecutive quarter of decline for the smartphone market as shipments fell to 286.0 million units in the quarter, about 3.5% lower than forecast. NEEDHAM, Mass., Aug– Worldwide smartphone shipments declined 8.7% year over year in the second quarter of 2022 (2Q22), according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker. Smartphone Shipments Decline for the Fourth Consecutive Quarter with 8.7% Drop in 2Q22 Shipments Amidst Global Uncertainty and Softening Demand, According to IDC
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