Component shortages, inflation drives -10% negative growth of smartphones in 1Q2022 YoY

Gartner said that worldwide smartphone sales declined 10% in the first quarter of 2022. “A number of factors including delayed product launches due to ongoing component shortages, rising inflation and poor consumer confidence led to a market decline in the first quarter of 2022,” said Anshul Gupta, senior director analyst at Gartner.

Key Market Findings

• 5G adoption is yet to pick up pace in many emerging markets. Sales of 5G mobile phones will total 805 million units in 2022, up from 547 million units in 2021.
• Foldable phones started to emerge as a strong replacement factor, driving up foldable phone sales for Samsung and leading Chinese vendors.
• Regionally, the U.S. smartphone market fared better than the other countries, owing to a larger iOS user base in the country who opted for device upgrades
• South Korea and Greater China recorded a sharp decline in smartphone sales in 1Q22 as buyers delayed upgrades amid a saturating 5G user base.

Vendor Perspective

• The top five leading smartphone vendors, except Apple, recorded a decline in sales in 1Q22.
• Despite a strong response to its newly introduced Galaxy S22 series and foldable smartphones, Samsung faced intense competition and slowing demand for smartphones.
• Apple’s 5G iPhones continues to drive upgrades thanks to its large iOS user base.
• Xiaomi, OPPO and Vivo saw smartphone sales decline due to slowing demand in China and, more significantly, disrupted manufacturing capabilities.

Worldwide Top 5 Smartphone Sales to End Users by Vendor in 1Q22 (Thousands of Units)

Source: Gartner (May 2022)