Consumers worldwide have been affected by the current global inflation. The slump in global PC and smartphone demand in the last few quarters reflects this. Most recently, data by global research firm Canalys shows that the global smartphone market has just recorded the worst Q3 since 2014. According to the research, “the worldwide smartphone market saw its third consecutive decline in Q3 2022, down 9% year-over-year (YoY)”. Like the majority of experts, the experts at Canalys believe that customers have put off buying electronic technology in favor of spending money on other necessities as a result of the bleak economic outlook.
Additionally, Canalys anticipates that the tendency would continue to restrain the smartphone industry for the ensuing six to nine months. According to Canalys analyst Amber Liu, “the smartphone market is very reactive to customer demand and vendors are fast adapting to the severe business conditions.” Given the weakening demand, she believes that for the majority of merchants, lowering the risk of inventory building up is the top goal.
This year, interest rate increases and rising energy costs have hampered consumer demand, with China’s slowing economy and the Covid-19 lockdowns playing a significant part in stifling smartphone sales. Only Apple’s iPhone has shown market resiliency this year, with double-digit sales declines reported by domestic competitors Xiaomi, Vivo, and Oppo.
With 22% of the market, Samsung Electronics, which has a minimal presence in China, managed to maintain its top spot globally, according to the data. This was made possible by aggressive discounts and promotions. Oppo and Vivo both experienced lower shares than the previous year, while Apple, whose iPhone 14 series went on sale in September, increased its share to 18%.
Perceived Effects of Fall in Smartphone Demand
Mobile phone technology has given the continent new opportunities. Mobile phones bridge the urban-rural and rich-poor gaps by connecting people to one another, information, markets, and services. In rural Africa, where mobile phones have frequently served as the first modern telecommunications infrastructure of any type, the implications can be particularly significant. Mobile phones have significantly decreased the cost of communication, enabling people and businesses to send and receive information rapidly and affordably on a range of economic, social, and political concerns.
Studies have demonstrated that the lower communication costs brought about by mobile phones have real-world economic advantages, increasing the efficiency of the labor market and the agriculture sector as well as producer and consumer welfare in particular situations and nations. This has changed the mobile phone development paradigm from one that only lowers communication and coordination costs to one that has the potential to transform lives through innovative applications and services.
The decline in smartphone purchases across Africa indicates a negative relationship between population density and other social and technological variables. Smartphone demand is highly and favorably correlated with the likelihood of having some technological and social facilities. In this regard, the anticipated further decline in smartphone demand will merely deprive Africa of certain advantages.