Smartphone sales in the third quarter 2022 decrease compared to a year ago, but the 10% increase in the average price keeps the decline at -3% compared to 2021. This is because they increase the number of top-of-the-line smartphones sold, with Apple increasing its market share.
The average price of smartphones increases by 10%, limiting the decline in revenues
According to data from Counterpoint Research, the smartphone market saw a decline of 3% in the third quarter of 2022, stopping shortly above 100 billion dollars. This is because the average selling price (ASP) increases: top-of-the-range products maintain sales while other market segments decrease. A situation that can be explained by the greater resilience of the luxury market in times of economic uncertainty.
I 5G devices sesign a significant increase (46% of the total), with an average price worth five times that of non-5G products. So that are worth 80% of the income, while accounting for less than half of sales. The smartphone market in terms of sales, however, drops by 12% compared to last year.
Credit: Counterpoint Research
In this situation, Apple has seen a 10% increase in revenue, also due to a 7% increase in the average price: the Pro and Pro Max models of the iPhone 14 are mainly sold.
Samsung maintains its place as the second-largest manufacturer in terms of revenue, with the Flip and Fold premium folding devices growing 25% over last year. Also Xiaomi Increases revenue: While devices under $300 dropped 1.5%, more expensive devices sold well.
Oppo saw a drop in revenue, also due to the Covid lockdowns in China. Something that impressed a lot too vivowhich sells half of its smartphones in China.
Therefore, if the number of smartphones sold worldwide decreases, the average price of the devices sold increases. Reducing the blow to the companies that produce these devices.