According to the latest report released by TrendForce’s WeChat account, global smartphone production declines by 19.5% in the first quarter of 2023, compared to the same period in 2022. Tallied for about 250 million units, the figure is said to be the lowest in the first quarter in the last ten years.
Global Smartphone Production Reports in Q1
In the report, TrendForce released the top five global market share data and their estimated production percentages. Samsung ranks first in Q1 of 2023 with a 24.6% share, followed by Apple with a 19.7% share while OPPO ranks third with a 10.7% share, Xiaomi ranks fourth with a 10.6% share and Vivo ranks fifth with a share of 8.0%.
Samsung’s smartphone manufacturing increased by 5.5% from the first quarter to the next and reached 61.5 million units in the first quarter thanks to the introduction of the company’s flagship Galaxy S23 series. On the other hand, Apple produced 53.3 million smartphones in the first quarter, a 32.9% decline from the previous quarter. Of these, around 78% were new iPhone 14 series models, which was an improvement over the same time last year.
In light of the challenging market conditions and adjustments to channel inventory, OPPO planned to reduce output. 26.8 million units were produced in the first quarter, 17% fewer than the previous quarter. The inventory adjustment is anticipated to have a positive impact on the second quarter, and as demand has begun to pick up in Southeast Asia and other regions, production could potentially increase by roughly 25% month over month.
However, the report further claims that Xiaomi produced 26.5 million units in the first quarter, a decline of 27.4% from the previous quarter. The quarterly output growth rate is constrained in the second quarter as a result of ongoing inventory adjustments, and a 20% increase from one quarter to the next is conservatively predicted. Vivo produced 20 million units in the first quarter, a 14.2% decline from the previous quarter.
Ultimately, TrendForce argues that the ongoing economic slump has increased activity in the market for used mobile phones and repairs, which could slow the development of smartphone production in the second quarter. In a nutshell, the second quarter’s smartphone manufacturing is predicted to expand by around 5% from the first quarter to 260 million devices, supported by seasonal demand.
