Smartphone shipments fell 6 percent in the third quarter, compared to the year before, as vendors struggled to meet demand for devices amid continuing component shortages, the latest study from Canalys showed. Shortages are not expected to ease until well into next year. As a result, smartphone brands have “reluctantly” lifted smartphone prices, also on the back of global freight costs, the researcher said.
Samsung again led smartphone shipments in the quarter, with its market share steady at 23 percent. Apple regained second place with 15 percent, from 12 percent year-on-year. Xiaomi went back to third place, with its share unchanged at 14 percent. Both Vivo and Oppo advanced their respective market to 10 percent from 9 percent.
Canalys noted that many channels are nervous heading into important sales holidays, such as Singles’ Day in China, and Black Friday in the west. “Channel inventories of smartphones are already running low, and as more customers start to anticipate these sales cycles, the impending wave of demand will be impossible to fulfill,” the researcher said. Customers can expect less aggressive smartphone discounting this year. To compensate, smartphone brands will likely look to bundle other devices, such as wearables and IoT, to create incentives for customers.
