Rising Titans: Tecno and Infinix Outshine Vivo, Emerge as the 5th Biggest Phone Companies Worldwide
anasalam1989 Global Smartphone Market: Challenges and Surprising Shifts in Rankings
The global smartphone market is currently navigating through the turbulent waters of an economic downturn, which has had a notable impact on its overall performance. According to data from TrendForce, the market experienced a substantial 20% decline in Q1, followed by a 6.6% decrease in Q2 this year. Unfortunately, the beginning of 2023 has not been particularly optimistic, with the combined production of 272 million smartphones in Q2 and Q1 contributing to a total of 522 million units manufactured during the first half of this year. This reflects a significant 13.3% decrease compared to the same period in 2022.
However, amidst these challenges, there have been some surprising outcomes in the smartphone industry. Notably, Transsion, which comprises Tecno, Infinix, and Itel brands, has emerged as the fifth-largest phone maker globally, displacing Vivo from its former position.
Transsion’s Rise to the Top 5 Transsion’s remarkable achievement in entering the Top 5 rankings is partially attributed to its expansion into the mid-to-high-end market segment. A substantial 71.9% surge in production was observed when comparing Q1 and Q2 figures, enabling Transsion to secure its place in the top rankings. This success highlights the brand’s ability to adapt and cater to changing market demands.
Meanwhile, Vivo, including both Vivo and iQOO, slipped to the sixth position, with a relatively modest yet positive increase of 15%, totaling 23 million units, still trailing behind Transsion’s impressive 25.1 million units.
Samsung and Apple’s Performance Samsung, despite facing a 12.4% decline from Q1, continues to maintain its lead in the market by producing 53.9 million units, capturing a market share of just under 20%. The introduction of the new Galaxy Z foldables in Q3 is anticipated to have an impact on the market, although the lackluster sales of the Galaxy S23 series may temper its effect.
Apple, on the other hand, traditionally experiences its weakest quarter in Q2, just before the major iPhone launch. Many consumers tend to postpone purchases in anticipation of the new model or discounted older versions. However, Apple’s prospects for success in Q3 remain uncertain due to production challenges for the new generation iPhone. TrendForce suggests that Apple could potentially surpass Samsung and secure the top spot if the iPhone 15 series exceeds expectations.
Xiaomi and Oppo’s Battle Xiaomi has been on an upward trajectory, experiencing a substantial 32.1% production increase compared to Q1, resulting in a total of 35 million units produced across Xiaomi, Redmi, and Poco phone lines. This growth has enabled Xiaomi to surpass its rival Oppo and claim the third position in the rankings.
Oppo, which includes Oppo, Realme, and OnePlus phones, slipped to the fourth place despite a 25.4% quarter-on-quarter production increase, yielding a total of 33.6 million smartphones manufactured. The company demonstrated strong performance in Southeast Asia and other markets, a trend expected to persist in Q3, setting the stage for a competitive race with Xiaomi.
Looking Ahead The first half of 2023 marks the lowest point in global smartphone production over the past decade, and the outlook for the upcoming year remains unpromising, with TrendForce projecting only a minor 2-3% annual increase. Smartphone manufacturers will need to adapt, innovate, and strategize effectively to navigate these challenging market conditions and emerge stronger in the highly competitive smartphone landscape.
