Smartphone Shipments Have Been Declining Steadily In The US: How Bad Are Apple, Samsung, And Others Suffering?

Smartphone shipments have been falling for the last nine months in the U.S. The concerning trend has affected the majority of smartphone manufacturers. But despite the downturn, phone makers are optimistic for a few valid reasons.

The US smartphone market shrunk by 24 percent year-over-year in Q2 this year. Let’s look at how the leading smartphone manufacturers have fared, and how they are trying to wade through the uncertain times.

Biggest Market Losers Include Samsung But Not Apple?

The US market was once one of the most vibrant and reliable for companies such as Samsung, Apple, Motorola, and even Google. However, the ongoing financial turmoil, rampant job cuts, and overall gloomy outlook about future economic growth have severely affected the sale of smartphones. Consumers are hesitant to upgrade, suggest a few reports.

Analysts had predicted that the just-ended quarter too wouldn’t bring a positive uptick in sales, but the severity wasn’t. The US smartphone market shrunk by a whopping 24% in Q2 2023 on a Y-o-Y basis.

Although Samsung is part of the losing brigade, the biggest loser this quarter was TCL-Alcatel, which saw a decline of 69 percent in smartphone shipments. Samsung was second.

The South Korean tech giant’s smartphone shipments fell by 37 percent, while Motorola’s shipments declined by 17 percent, claims market research firm Counterpoint.

Apple hasn’t been the exception, but the iPhone maker did manage to fare a lot better. Despite the severely shrunken market, Apple’s shipments dropped by just 6 percent. This makes the company and the analysts bullish about the upcoming iPhone series.

Google surprised analysts as it was the only company that increased its shipments by 48 percent. It is, however, important to note that the search giant’s smartphone market share was minuscule, to begin with.

Who Is The Market Leader In Smartphones And Why?

Americans have traditionally preferred the iPhone, and their loyalty has helped Apple retain the top stop. Apple Inc. currently leads the market with a 55 percent market share. Samsung has secured 23 percent of the market, while Motorola is a distant third with 9 percent.

It is interesting to note that Apple has steadily captured the US market, primarily by snatching it away from Samsung and other smaller brands. Needless to say, this is a concerning trend for the South Korean company.

Given the market condition, it is no surprise that manufacturers and brands are coming up with new and innovative designs in addition to the conventional candy bar smartphones. Multiple leading brands, except Apple, have launched foldable Android smartphones.

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