The global smartphone market experienced an 8 percent decline in the second quarter of 2023, marking the eighth consecutive quarter of year-on-year contraction, according to a new report.

The latest research from Counterpoint's Market Pulse service revealed a 5 percent decline compared to the previous quarter.

Despite the overall market slowdown, Samsung maintained its position as the market leader with a 22 percent market share. The company's success, as per Counterpoint, can be attributed to the strong performance of its Galaxy A-series smartphones worldwide. Apple secured the second spot, achieving its highest-ever Q2 market share. Xiaomi, the third-largest brand, faced challenges in its key markets of China and India, prompting the brand to focus on expanding into other markets and refreshing its product portfolio.

The report also showed that OPPO performed well in its home markets of China and India, thanks to its association with OnePlus, enabling it to maintain its global market share despite losses in Western Europe. Meanwhile, Vivo (including iQOO) experienced significant growth declines in China, primarily due to intense competition from Samsung and OPPO. The brand also faced tough competition from these companies in the offline markets of India and Southeast Asia.

The report suggests that the global smartphone market has transitioned past its period of rapid growth, as consumer replacement cycles have lengthened, device innovation has converged, and a more mature refurbished smartphone market has emerged, particularly in the low-to-mid-tier price segment.

However, the premium segment (smartphones priced at $600 and above) continues to exhibit growth, unaffected by broader market constraints. Consumers in this segment seek a superior experience, facilitated by the availability of easy finance options in key regions. The premium segment witnessed its highest-ever contribution to the overall market during the second quarter, with more than one out of five smartphones sold belonging to this category.

Apple has capitalised on this trend of ‘premiumisation,’ and achieved record shares in multiple new markets that are traditionally not considered its core markets. Notably, the company experienced a remarkable 50 percent year-on-year growth in Q2 2023 in India. The sustained strong performance of the premium segment has mitigated revenue declines compared to sales volumes, motivating brands to invest in market expansion and innovative technologies.

(Edited by : Shoma Bhattacharjee)