Apple iPhone dominates Q4 smartphone shipments, market share despite CCP ‘Zero COVID’ factory shutdowns

Despite the Chinese Communist Party’s failed ‘Zero COVID’ shutdowns of Foxconn’s “iPhone City” assembly campus in China during Q4, Apple’s iPhone dominated worldwide smartphone shipments and increased market share over imitators, according to International Data Corporation (IDC).
The pro camera system on iPhone 14 Pro Max
Worldwide smartphone shipments declined 18.3% year over year to 300.3 million units in the fourth quarter of 2022 (4Q22), according to preliminary data from the IDC Worldwide Quarterly Mobile Phone Tracker. The drop marks the largest-ever decline in a single quarter and contributed to a steep 11.3% decline for the year. 2022 ended with shipments of 1.21 billion units, which represents the lowest annual shipment total since 2013 due to significant supply chain issues due to China’s quixotic “Zero COVID” response, dampened consumer demand, inflation, and general economic uncertainty. These results puts IDC’s expected 2.8% smartphone market recovery for 2023 in serious jeopardy with heavy downward risk to the forecast.
“We have never seen shipments in the holiday quarter come in lower than the previous quarter. However, weakened demand and high inventory caused vendors to cut back drastically on shipments,” said Nabila Popal, research director with IDC’s Worldwide Tracker team, in a statement. “Heavy sales and promotions during the quarter helped deplete existing inventory rather than drive shipment growth. Vendors are increasingly cautious in their shipments and planning while realigning their focus on profitability. Even Apple, which thus far was seemingly immune, suffered a setback in its supply chain with unforeseen lockdowns at its key factories in China. What this holiday quarter tells us is that rising inflation and growing macro concerns continue to stunt consumer spending even more than expected and push out any possible recovery to the very end of 2023.”
“We continue to witness consumer demand dwindle as refresh rates climb past 40 months in most major markets,” said Anthony Scarsella, research director with IDC’s Worldwide Quarterly Mobile Phone Tracker, in a statement. “With 2022 declining more than 11% for the year, 2023 is set up to be a year of caution as vendors will rethink their portfolio of devices while channels will think twice before taking on excess inventory. However, on a positive note, consumers may find even more generous trade-in offers and promotions continuing well into 2023 as the market will think of new methods to drive upgrades and sell more devices, specifically high-end models.”
Top 5 Companies, Worldwide Smartphone Shipments, Market Share, and Year-Over-Year Growth, Q4 2022
(Preliminary results, shipments in millions of units)
Source: IDC Worldwide Quarterly Mobile Phone Tracker, January 25, 2023
Top 5 Companies, Worldwide Smartphone Shipments, Market Share, and Year-Over-Year Growth, CY2022
(Preliminary results, shipments in millions of units)
Source: IDC Worldwide Quarterly Mobile Phone Tracker, January 25, 2023
MacDailyNews Note: Apple sells only premium iPhones, with strong margins, not cut-rate junky feature phones to pad their shipment numbers like Samsung et al.
Notes:
• Data are preliminary and subject to change.
• Company shipments are branded device shipments and exclude OEM sales for all vendors.
• The “Company” represents the current parent company (or holding company) for all brands owned and operated as a subsidiary.
• Figures represent new shipments only and exclude refurbished units.
MacDailyNews Take: Apple is best-positioned to weather inflation and recession due to its superior customer demographics.
We’ve been covering Apple in these pages for over 20 years and have seen Apple perform through multiple recessions.
It’s the non-Apple tech companies that are most at risk during a consumer spending slowdown since their consumers have less, and/or are less willing, to spend. Apple will be just fine, even in a recession. And, during any stock price declines, Apple’s massive buyback plan will be even more effective in retiring shares and providing support for shareholders. – MacDailyNews, October 4, 2022
Apple’s consumer demographics suggest that it could be resilient, even amid inflation. Plus, a very strong profit margin gives the company plenty of flexibility to absorb rising prices should the need arise. – MacDailyNews, November, 11, 2022
The most inflation- and recession-resistant big tech company is Apple, thanks to its superior customer demographics. – MacDailyNews, October 27, 2022
Apple iPhone customers are the most recession-proof smartphone buyers. — MacDailyNews, September 7, 2022
The same goes for Mac, iPad, Apple Watch, and Apple Services customers in personal computers, tablet computers, smartwatches, and subscriptions, respectively. – MacDailyNews, October 13, 2022
When your money becomes a greater concern, you want to spend it wisely… If it’s not an iPhone, it’s not an iPhone. Further, if it’s not an iPhone Pro, it’s not an iPhone Pro. – MacDailyNews, October 27, 2022
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