Consumers will likely see more smartphone marketing and promotions in the second half of 2022 as device manufacturers and wireless operators in North America try to compensate for decreasing demand.
According to Canalys Research, the North American smartphone market, once considered the most resilient market, is experiencing a decline in demand as a result of high inflation, decreasing consumer confidence and an economic slowdown.
In the second quarter, the North American smartphone market reached 35.4 million shipped units, a 6.4% decline from the previous year. Apple’s market share grew by 3% and the smartphone maker continues to dominate the market as it has for three consecutive quarters. Canalys added that demand for the iPhone 13 and the iPhone SE (3rd generation) remains strong. In addition, Samsung’s smartphone shipments increased 4% in the quarter as its S series and low-end A series devices continue to perform well.
The company said that vendors are responding to the declining demand while at the same time preparing for new launches in the second half of the year by increasing their promotions and bundles.
Interestingly, Canalys Research analyst Brian Lynch said that the appetite for mid-range devices such as the iPhone SE, Galaxy A53 and Galaxy A33 is “vanishing fast.” The reason mid-range devices are getting hit hard, Lynch said is because consumers that normally would consider devices that cost between $250 and $600 are now looking for cheaper options because they are feeling the financial pressure of inflation.
Lynch added that smartphone demand at the low-end remains solid but there is growing competition in that part of the market from Motorola’s refreshed G Power smartphone, Samsung’s A13 models and TCL’s new devices that it is launching with Tracfone, Verizon and T-Mobile.
Meanwhile, demand for high-end smartphones such as the Apple 13 series and Samsung’s Galaxy S series remains strong.
Canalys said that the North American smartphone market reached 35.4 million shipped units in the second quarter, a 6.4% decline from the previous year.