Big Stories 2023
Intan Rakhmayanti Dewi, CNBC Indonesia
Tech
Sunday, 12/31/2023 10:00 WIB
Photo: HP Electronics Store (CNBC Indonesia/Andrean Kristianto)
Jakarta, CNBC Indonesia – Throughout 2023, the global smartphone market declined for a time, although then gradually recovered. Starting from the Q1-Q3 2023 quarter, the Canalys report states that global HP shipments have still not recovered.
The unexpected global delivery of cellphones has become one of CNBC Indonesia’s most popular news stories for 2023.
A report by research firm Canalys states that the decline in Q1 2023 will reach 13% year-on-year (yoy). The report said the market is still not recovering despite improvements in key macro factors.
Canalys also reported that global smartphone shipments fell 13% year-on-year (yoy). In that period only 269.8 million units were sold. The sluggish market has also been felt since the last four quarters.
Canalys analyst Sanyam Chaurasia said the market decline in Q1 was in line with expectations. Consumer demand is seen as still sluggish during this period.
“Despite massive price cuts and promotions, consumer demand remains sluggish, especially in the lower class segment due to high inflation which has an impact on consumer confidence and spending,” said Chaurasia, some time ago.
“In addition, sluggish user demand triggered a major wave of de-stocking across the supply chain, with channels reducing investment levels to safeguard operations,” he continued.
Even so, Toby Zhu as another Canalys analyst is of the opinion that there has been an increase in demand at certain price ranges. Vendors are also seen to be more active in production planning and component ordering.
Global HP Market Q2 and Q3 2023
Still from the Canalys report, global cellphone shipments will decrease by 10% in Q2 2023.
In total, there were 258.2 million HP units shipped worldwide, compared to 287.4 million units in the previous year. Even though the global cellphone market is still struggling, analysts assess that the decline is no longer as big as in previous quarters.
“The decline in the global HP market is getting smaller, helped by signals of increasing demand in several countries,” said Canalys analyst Amber Liu.
Furthermore, Liu assessed that the low-end cellphone market is starting to strengthen. This was triggered by innovation provided by HP manufacturers to provide added value for entry-level cellphones.
“We predict that a healthy business climate will be created in the second half of this year, creating positive energy among industry players,” he said.
Meanwhile, in the July-September period, according to the latest data from Canalys, the global smartphone market experienced a slight decline of 1%. This indicates a slowdown in decline during that period.
Supported by regional recovery and increased demand for new products, the global smartphone market recorded double-digit sequential growth in Q3 ahead of the sales season.
However, analyst at Canalys Toby Zhu stated that smartphone manufacturers must remain careful about the rebound.
“Global macroeconomic and geopolitical uncertainty brings fragility to the recovery process and aid distribution,” he said.
Canalys forecasts show a slowdown in smartphone market growth in the medium and long term.
Careful monitoring of stock turnover and final demand is essential to avoid volatility due to high inventories.
It sees vendors strategically rebuilding networks and component inventories to prepare for a potential revival in demand and rising supply chain costs.
“The current spike in short-term orders along with reduced supply capacity could lead to component shortages, challenging planning and production.” he concluded.
Watch the video below:
Video: Recommendations for the 5 Best Cheap Cellphones 2023
(fab/fab)
2023-12-31 03:00:00
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