Smartphone Shipments Hit A New Low with A 7.8% Decline in Q2, Says IDC Report

As per the initial data provided by the IDC, there was a 7.8 per cent drop in global smartphone shipments, with the total number of units reaching 265.3 million, In the second quarter of 2023 (April-June).

The International Data Corporation(IDC) is a renowned global provider of market intelligence and advisory services. The ongoing contraction in the global smartphone market has been lasting for eight consecutive quarters. 

This has been caused due to several factors such as weak consumer demand, inflation, macroeconomic uncertainties, and an oversupply of inventory. In spite of these issues, the IDC has reported that the rate of decline in smartphone shipments is starting to slow down as compared to previous quarters, providing hope to the industry.

The research director with IDC's Mobility and Consumer Device Trackers, Nabila Popal said in a statement that the inventory levels are showing signs of improvement, which is a positive development for the market. "The latest market chatter suggests that by Q3 excess inventory in finished devices and components should clear up" she added further.

According to IDC, there is a sense of optimism that the smartphone market will experience a recovery in the latter half of the year and beyond. In China, which is a key market for smartphones, there was a significant improvement as the year-over-year decline in the April-June quarter reduced to 2.1 per cent. 

This change came after a prolonged period of five quarters of double-digit contractions. However, despite this improvement, consumer sentiment and spending in China remain low, indicating that the market's recovery is still in progress.

Asia/Pacific (excluding Japan and China) experienced a decline of 5.9 per cent in smartphone shipments, the US witnessed a substantial drop of 19.1 per cent, and Europe, the Middle East, and Africa (EMEA) saw a decline of 3.1 per cent during the same period.

Amidst these challenges, Anthony Scarsella, the research director of Mobile Phones at IDC, has revealed, "Although the first half of the year has presented many challenges to the market, we believe that there remains plenty of opportunity awaiting in the second half of the year." 

This positive outlook indicates that the market might rebound and regain momentum as the year progresses, though it will still have to overcome existing challenges to fully recover.

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