After a strong Q2 last year, vivo (including iQOO) saw significant growth declines in China, as well as strong competition from Samsung and OPPO in the offline markets of India and Southeast Asia.

Smartphone Market Sees 8% Decline in Q2, Apple Reaches Highest Market Share: Report

According to a recent report, the global smartphone market witnessed its eighth consecutive quarter of decline, with a drop of 8 percent compared to the previous year and 5 percent compared to the previous quarter in Q2 of 2023.

According to Counterpoint Research, Apple recorded its highest second quarter market share ever, ranking second with its share increasing to 17 percent. “Apple is riding this wave of ‘premiumization’, achieving record shares in a number of new markets not generally considered its core markets.”

A good example is India, where it grew 50 percent (year-on-year) in the second quarter of 2023,” said research analyst Ankit Malhotra. Additionally, the report said Samsung led the market with a 22 percent market share, benefiting from the strong performance of the Galaxy A series globally.

The third largest brand Xiaomi faced headwinds in its biggest markets – China and India. The brand aims to compensate for such declines by expanding to other markets and updating its product range. Despite losing market share in Western Europe, OPPO did relatively well in its home markets of China and India (thanks to OnePlus).

After a strong second quarter last year, vivo (including iQOO) saw a significant slowdown in growth in China and strong competition from Samsung and OPPO in the Indian and Southeast Asian offline markets. Additionally, the report noted that the premium segment ($600+ wholesale price) is immune to wider restrictions as the mature consumer opts for a superior experience facilitated by easy availability of financing options in key geographies.

More than one in five smartphones sold during the quarter belonged to the premium segment.

“All regions worldwide experienced a contraction in sales, but the biggest declines were seen in relatively more developed markets such as the US, Western Europe and Japan, all of which recorded double-digit year-on-year declines. Markets in China, India and Middle East and Africa declined relatively less,” Malhotra said.

“We expect the market to recover slowly in the coming quarters,” he added.