Smartphone Shipments Dropped 24 Percent In Q2 2023 In The US

Smartphone shipments in the US took a significant hit in the second quarter of 2023, dropping by a staggering 24% compared to the same period last year, as reported by analyst firm Counterpoint Research. This marks the third consecutive quarter of declining phone shipments in the country.

Counterpoint’s report revealed that consumers showed hesitation in upgrading their devices due to market uncertainty, despite falling inflation numbers and a robust job market. The impact was felt differently among manufacturers, with Android phone makers facing the brunt of the decline. Samsung experienced a sharp drop of 37% in shipments, while Motorola and TCL-Alcatel saw declines of 17% and a whopping 69%, respectively. On the other hand, Apple’s iPhone shipments only dipped by 6%, thanks to strong carrier promotions that helped subsidize costs for the brand’s pricey phones. This also indicates the resilience of premium phone sales amidst the pandemic’s shipment shocks. Meanwhile, Google’s phone shipments increased by 48%, but this was from a low 2% market share during the same period the previous year, making it a relatively modest gain.

Despite the overall decline in phone shipments, Apple emerged as the dominant player in the US phone market, with its market share rising to 55% from 45% in the same period last year. In contrast, Samsung's market share dropped from 28%… Share on X

Despite the overall decline in phone shipments, Apple emerged as the dominant player in the US phone market, with its market share rising to 55% from 45% in the same period last year. In contrast, Samsung’s market share dropped from 28% to 23%. Other phone-makers maintained their positions at relatively stable levels.

The phone industry has faced challenges in recent years due to the pandemic’s impact on demand and supply shortages. While supply chains have now recovered, the duration for demand to return to pre-pandemic levels remains uncertain. The International Data Corporation (IDC) predicts a 6% year-over-year global phone industry recovery in 2024.