Demand for smartphones is falling, will we see more promotions?

In the second half of 2022, you can expect a plethora of promotions and new smartphone bundles as vendors struggle to counter declining consumer demand for smartphones in North America, according to research firm Canalys.

A recent study by Canalys shows that smartphone shipments in North America decreased by 6.4% in the second quarter of 2022, when 35.4 million units were shipped. This decline can be explained by economic problems and high inflation.

“The combination of high inflation, falling consumer confidence and slowing economic growth is dampening demand in North America, which used to be the most resilient market in the world,” said Canalys analyst Runar Bjorhovde.

A more forgotten mid-range

Economic hardships are forcing consumers to rethink their buying decisions. They are now more likely to choose low-end or high-end devices, resulting in a lack of demand for mid-range devices.

The iPhone SE (3rd generation), Galaxy A53 and Galaxy 33 performed worse than expected as consumers who normally consider buying devices priced between $250 and $600 are forced to consider cheaper ones, according to Canalys Research analyst Brian Lynch. options due to financial pressure. However, the market for budget and high-end models remained stable.

“At the low end, demand remains strong, but competition among suppliers is fierce. Motorola’s refreshed G Power, Samsung A13 models and new TCL models with Tracfone, Verizon and T-Mobile offer a variety of budget options that are growing in demand,” said Brian Lynch. “High performance also remained strong, with Apple’s iPhone 13 series and Samsung’s Galaxy S series finding new opportunities. »

Apple and Samsung Lead North America Shipments

Apple and Samsung dominated the top ten models shipped to North America in the second quarter of 2022. Despite the overall drop in shipments, Apple’s annual growth was 3%, while Samsung’s was 4%.

Low-end challengers who want to increase market share and protect their carrier niches will have to actively approach customers, according to Brian Lynch.

“Merchants must invest heavily in marketing and offer promotions and packages to accelerate sales,” he said.

Source: .com

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