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MEA Smartphone Shipments Fall to Lowest Q1 Level Since 2016

  • MEA smartphone shipments retreated 11% YoY in Q1 2023, or 3% in QoQ terms.
  • The usual macro headwinds continued to weigh on the market, including high inflation rates, local currency depreciation and weak consumer sentiment.
  • Samsung performed resiliently, with shipments slightly down but market share trending up.
  • Apple outperformed prevailing market trends. Its YoY shipments were up 35%.
  • Transsion Group shipments dropped 19% YoY, as itel continued to slide while Infinix advanced.

London, Boston, Toronto, New Delhi, Hong Kong, Beijing, Taipei, Seoul – May 11, 2023

Smartphone shipments in the Middle East and Africa (MEA) region fell 11% YoY and 3% QoQ in Q1 2023 to reach the lowest Q1 shipment level since 2016, according to the latest research from Counterpoint’s Market Monitor Service. Much of the prevailing economic woes of the region continued, including high inflation rates, local currency depreciation and weak consumer sentiment. Smartphone OEMs were stuck in low gear as inventory correction, channel efficiency and cost cutting continued to be the main themes in the region.Counterpoint Research - MEA Smartphone Shipments and YoY Growth, Q1 2023

Commenting on the market’s performance, Senior Analyst Yang Wang said, “The MEA smartphone market saw another tough quarter as the macroeconomic environment remained challenging. Difficulties impacting consumer spending towards big-ticket upgrades such as smartphones are now well known, and both consumers and OEMs are adjusting to the new realities with extra caution. The prospect of a V-shaped rebound has dimmed as companies prioritize inventory management, cost controls and streamlined product portfolios.”

Counterpoint Research - MEA Smartphone Shipments Market Share, Q1 2023

Despite the gloomy tone, there were early signs of stabilization towards the end of the quarter. For instance, most OEMs saw encouraging sell-out numbers due to the Ramadan and Easter sales promotions. Most notably, this manifested at the top of the market, where Apple’s iPhone 14 series (particularly the higher-priced Pro and Pro Max models) has proven to be extremely popular. Samsung’s new 5G models in the A series sold well. The mid-range OEMs or mid-range segments within OEMs have also been strong, with the likes of Xiaomi, TECNO, Infinix, HMD Nokia and realme all achieving above-average market performance.

On the other hand, the impact of currency depreciation and inflation has hurt lower-income households much more than the average. In Q1 2023, this manifested in itel’s 45% YoY drop. itel is struggling to keep refreshing its portfolio while keeping costs under control. OPPO and vivo somewhat stabilized after the product availability situation improved, but the two brands continued to shed market share as distributors remained cautious on the brands’ commitment to the region.

Commenting on the direction of the MEA smartphone market, Wang added, “Poor consumer demand is likely to remain the main theme for the rest of the year, as consumers postpone upgrades while holding onto their current handsets a little bit longer. We, however, expect that the inventory situation will improve gradually by the second half of the year, which will be followed by more ambitious product portfolio revamps and promotional activities by OEMs and distributors. This will coincide with better economic conditions as global interest rates and energy prices stabilize, providing much-needed breathing room for consumers in emerging markets.”

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Yang Wang

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You can also visit our Data Section (updated quarterly) to view the smartphone market share for World, USA, China and India.

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Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

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Global Smartphone Market Declines 14% YoY in Q1 2023; Apple Records Highest-Ever Q1 Share

  • The global smartphone market declined by 14% YoY and 7% QoQ to record 280.2 million unit shipments in Q1 2023.
  • Samsung replaced Apple as the top smartphone player in Q1 2023, driven by its mid-tier A Series and the recently launched S23 series.
  • Apple’s YoY shipment decline was the least among the top five brands. Consequently, it recorded its highest-ever Q1 share of 21%.
  • Global smartphone revenues declined by 7% YoY to around $104 billion. Apple, Samsung, Xiaomi increased their Average Selling Prices YoY.

London, New Delhi, Hong Kong, Seoul, Beijing, Denver, Buenos Aires – May 5, 2023

The global smartphone market faced further contraction in the post-holiday-season quarter with shipments declining by 14% YoY and 7% QoQ to 280.2 million units in Q1 2023, according to the latest research from Counterpoint’s Market Monitor service.

Quarterly global smartphone market
Source: Counterpoint Research Market Monitor Preliminary Data, Q1 2023
Note: OPPO Includes OnePlus

Commenting on overall market dynamics, Senior Analyst Harmeet Singh Walia said, “Smartphone shipments declined further in Q1 2023 following the weakest holiday-season quarter since 2013, as the slower-than-expected recovery in China was marred by alarming bank failures on both sides of the Atlantic further weakening consumer confidence in the face of unrelenting market volatility. The smartphone market was also hit by some major brands supplying fewer new devices to a market struggling with high inventories at a time when consumers are choosing to renew less often, but with more durable smartphones when they do buy.”

Consequently, global smartphone revenue and operating profit also declined, although not as much as shipments. This was due, in part, to the lower-than-usual decline in Apple’s shipments, to 58 million units in Q1 2023. Apple thereby managed to capture nearly half of all smartphone revenues. While Samsung’s shipments declined 19% YoY despite growing by 4% QoQ to 60.6 million units, the launch of the Galaxy S23 series enabled Samsung’s ASP to increase to $340, up 17% YoY and 35% QoQ, which in turn contributed to global revenues falling relatively less. Apple and Samsung also remain the most profitable brands, together capturing 96% of global smartphone operating profits.

Major handset vendor's shipment
Source: Counterpoint Research Market Monitor Preliminary Data, Q1 2023
Note: OPPO Includes OnePlus

Commenting on Apple’s performance, Research Director Jeff Fieldhack said, “Apple outperformed the market due to several factors. Firstly, the stickiness of its ecosystem prevents its customers from choosing a cheaper smartphone even in times of economic difficulty. Secondly, with sustainability becoming a priority for many, not only has Apple captured nearly half of the secondary market, it is also attracting users who are willing to spend more for longer-lasting devices. Thirdly, it is the preferred brand for Gen Z consumers in the West and is thereby positioning itself for sustained success. At the same time, it has been filling the void left by Huawei in China’s premium market. So, Apple is able to weather economic and other fluctuations better than its rivals while enjoying unflinching loyalty. This also meant Apple was able to meet the demand for the iPhone 14 series which spilt over Q4 2022, when it had problems at its Zhengzhou factory, rather than that share dissipating or transferring to rivals.”

 

Besides Samsung and Apple, the biggest global smartphone brands from China, Xiaomi, OPPO* and vivo, will have to wait longer for their shipments to rebound as each of them experienced double-digit annual declines in Q1 2023. This was due to a seasonal slowdown in China at a time when the country’s economic recovery is taking longer than expected. OPPO* has recently been facing challenges in overseas markets too. It has had to exit the German market after losing a patent lawsuit with Nokia. At the same time, the three brands’ revenues and profitability have struggled too. While OPPO* and vivo saw both annual shipment and ASP declines, leading to double-digit revenue declines, Xiaomi’s slight annual ASP growth could also not prevent a double-digit revenue decline in Q1 2023.

The smartphone market as a whole, too, is likely to struggle for the next couple of quarters. Commenting on the near-term outlook, Research Director Tarun Pathak said, “The persistent issues affecting the smartphone market are unlikely to abate anytime soon. Moreover, the recent decision by OPEC countries to cut oil production may lead to higher inflation rates, causing a reduction in consumers’ spending power. As a result, even if the decline in smartphone shipments stabilises, a significant recovery is unlikely before the year-end holiday quarter.”

*OPPO includes OnePlus

You can also visit our Data Section (updated quarterly) to view the smartphone market share for WorldUSChina and India.

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Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

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MEA Smartphone Shipments Decline 20% YoY in Q3 2022 as Macro Situation Worsens

  • MEA smartphone shipments retreated 20.4% YoY and 12% QoQ in Q3 2022 to 35 million units.
  • This was the lowest level since Q2 2020, or since the start of the COVID-19 pandemic.
  • Samsung’s shipments and market share increased YoY as the new A-series models continued to gain momentum.
  • Transsion Group’s shipments led the market downturn, mainly due to TECNO and itel’s aggressive destocking efforts. Infinix, on the other hand, remained resilient to market headwinds.
  • Xiaomi returned to growth as product availability improved, while its exposure to the Middle East market benefitted from improving sentiment.

 London, Boston, Toronto, New Delhi, Hong Kong, Beijing, Taipei, Seoul – December 19, 2022

Smartphone shipments in the Middle East and Africa (MEA) region fell 20.4% YoY and 12% QoQ to 35 million units in Q3 2022, according to the latest research from Counterpoint’s Market Monitor Service. Compared to the previous quarter, the macro situation continued to worsen as inflation undermined consumer sentiment, while OEMs became ever more cautious in areas such as distribution expansion, marketing efforts and stock management.

MEA Smartphone Quarterly Unit Shipments

Counterpoint Research - MEA Smartphone Quarterly Unit Shipments
Source: Counterpoint Research Market Monitor, Q3 2022
Notes: Xiaomi includes POCO and Redmi; OPPO includes OnePlus; Figures may not add up to 100% due to rounding.

Commenting on the market’s performance, Senior Analyst Yang Wang said, “The biggest issue in the smartphone market, and indeed any consumer market, this year has been macro issues. We saw no let-up in inflationary pressures and currency headwinds in the MEA market in Q3 2022. Consumer sentiment continued to be bleak, leading to OEMs and distributors cutting market spending. On the other hand, high inventory levels forced market participants to adopt destocking measures, hurting profit margins. Despite this, the 20% YoY drop probably exaggerated the gloominess in the market, as Q3 2021 was an especially successful period for the region.”

Within the MEA region, the Middle East fared better due to the GCC countries’ resilience. High inflows of energy revenues buttressed state coffers, which strengthened local currencies and kept inflation down. The region was also boosted by sales events associated with the World Cup, which is being held in Qatar since November. On the other hand, roughly 8 in 10 countries in Africa saw inflation accelerating in Q3, according to Counterpoint estimates. Persistent energy supply issues, as well as worries about another round of food shortages, kept consumers ever more cautious. We believe there is further room for inflation rates to rise in Africa towards the end of the year.

MEA Smartphone Unit Shipments Share, Q3 2022 vs Q3 2021

Counterpoint Research - MEA Smartphone Unit Shipments Share, Q3 2022 vs Q3 2021
Source: Counterpoint Research Market Monitor, Q3 2022
Notes: Xiaomi includes POCO and Redmi; OPPO includes OnePlus; Figures may not add up to 100% due to rounding.

In terms of the MEA smartphone market’s competitive landscape, the biggest takeaway from the quarter was that while the economic downturn hurt most players, smaller brands disproportionately suffered more, as seen from the dramatic loss of market share. During this period of rising costs and worsening market sentiment, smaller brands faced mounting supply challenges. Maintaining cost discipline meant slashing spending elsewhere, such as marketing and distribution, and smaller players were unable to keep up with the bigger OEMs.

Market leader Samsung saw YoY volume and market share growth, as its supply issues subsided, while the Galaxy A series’ 2022 iterations continued to gain momentum. Samsung continues to be the best-placed OEM in the region as its broad product portfolio covers every customer segment. The brand is well-positioned to capture market volume when the economic issues ease.

Transsion Group brands continued to take the MEA region’s biggest share of smartphone shipments. However, its exposure to the lower-value segments, particularly in Sub-Saharan Africa, meant that it faced the strongest headwinds among the big brands. We noted aggressive destocking efforts during the quarter, mostly concentrated within the lower-end TECNO and itel brands. On the other hand, Infinix continued to perform well as its 2022 models ticked all the boxes. We believe Transsion may stage a rebound towards the end of the year, as the company prepares for higher-end launches for the TECNO and Infinix brands.

Xiaomi captured the third spot among OEMs, as supply issues disappeared in the rear-view mirror. The company’s affordable mid-range products, particularly the Redmi Note 11 and Redmi 10 series, remained popular among price-conscious customers, while its business received a boost due to favorable conditions in the Middle East region.

Apple continued to gain market share in the region, largely due to improving distribution across the region. The iPhone 13 series appeared regularly among the best-selling models in the region, even during the last months of the iPhone 13 cycle. We expect Apple’s volume and market share to increase further in the next quarter as the iPhone 14 sales begin to gain momentum.

While the end-of-year shopping season is expected to deliver a boost to the smartphone market, sales increases are unlikely to match the levels seen last year, as affordability will continue to be first and foremost among customers’ concerns. Macroeconomic headwinds and geopolitical uncertainties may well persist into 2023, but we do expect a small rebound in the MEA smartphone market next year. Economies in MEA have fared better than those in developed countries, and the second half of 2023 may see a release of pent-up demand, just as post-COVID-19 reopening spurred a period of consumer optimism.

Counterpoint Research’s market-leading Market Monitor, Market Pulse and Model Sales services for mobile handsets are available for subscribing clients.

Feel free to contact us at press@counterpointresearch.com for questions regarding our in-depth research and insights.

You can also visit our Data Section (updated quarterly) to view the smartphone market share for World, USA, China and India.

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MEA Smartphone Shipments Decline 7.8% YoY in Q2 2022 on Macro Headwinds

  • MEA smartphone shipments retreated 7.8% YoY and 10% QoQ in Q2 2022 to 38 million units.
  • This was the lowest level since Q2 2020, or since the depth of the COVID-19 pandemic.
  • Samsung’s shipments and market share increased YoY as the mid-range A series gained popularity in the region.
  • Transsion Group’s shipments were generally flat YoY. Infinix and TECNO gathered pace while itel struggled.
  • New Chinese entrants Xiaomi, OPPO, vivo and realme trended down sharply due to caution stemming from demand issues elsewhere.

London, Boston, Toronto, New Delhi, Hong Kong, Beijing, Taipei, Seoul – August 8, 2022

Smartphone shipments in the Middle East and Africa (MEA) region fell 7.8% YoY and 10% QoQ to 38 million units in Q2 2022, according to the latest research from Counterpoint’s Market Monitor Service. Worsening macro headwinds on the economic and geopolitical fronts undermined consumer demand as well as brands’ enthusiasm to expand their footprint across the region.

MEA Smartphone Quarterly Unit Shipments

Counterpoint Research MEA Smartphone Quarterly Unit
Source: Counterpoint Research Market Monitor, Q2 2022

Commenting on the market’s performance, Senior Analyst Yang Wang said, “The biggest drag on the market was, unsurprisingly, macro issues. Inflation induced by food and fuel shortages dampened consumer demand while declining domestic currencies against the US dollar reduced the purchasing power of consumers.”

There were also secondary macro factors that impacted the market. For example, some governments imposed food export bans or ‘non-essential’ goods import bans to stem the outflow of foreign currency reserves. Taxes on electronics products were also increased, adding more hurdles to the market’s smooth operation.

Given the pessimistic global macro sentiment, we also saw some brands becoming cautious about activities in the region. Difficulties elsewhere meant that brands were under pressure to streamline budgets and activities, which were redirected to more strategic markets and regions. This meant that incentives to push brand penetration in MEA were scaled back, which in turn forced distributors and resellers to raise prices to defend their margins. These headwinds led to declining shipments for many OEMs.

MEA Smartphone Unit Shipments Share, Q2 2022 vs Q2 2021

Counterpoint Research - MEA Smartphone Unit Shipments Share, Q2 2022 vs Q2 2021
Source: Counterpoint Research Market Monitor, Q2 2022
Notes: Xiaomi includes POCO and Redmi; OPPO includes OnePlus; Figures may not add up to 100% due to rounding

The market leader, Samsung, grew YoY from a relatively low base in Q2 2021 when it faced COVID-19 disruptions at its Vietnam production facilities. The new and revamped Galaxy A-series devices have performed well and were among the best-selling devices during Q2. Samsung’s shipments are expected to grow in H2 with the upcoming launch of its new generation of foldables and as end-of-year sales approach.

Transsion Group’s brands continued to take the biggest share of smartphone shipments in the MEA region. Transsion Group brands’ shipment share grew YoY, largely driven by a strong performance of Infinix and TECNO devices. Multiple stylish and feature-rich new launches, like Infinix’s Hot series and TECNO’s Pova and Spark series, helped the brands weather adverse market forces. On the other hand, as the asymmetric impact of inflationary pressures on the low and entry tiers mounted during the quarter, itel’s smartphone shipments declined 23% YoY in Q2. itel is in a tough spot with regard to rising component prices, an underwhelming product portfolio revamp and customers migrating to the more upmarket TECNO and Infinix devices.

Apple’s shipments also grew 2% YoY, largely due to better distribution and product availability in GCC countries. The iPhone 13 series has the best-selling premium devices in the region since its launch. OPPO, realme, vivo and Xiaomi saw steep YoY declines in their Q2 shipments. The OEMs continue to struggle in establishing a foothold in the region, as weak distributor incentives and supply issues have plagued the brands throughout H1 2022. Furthermore, stiff competition from regional stalwarts Samsung and Transsion Group’s TECNO and Infinix has curtailed market share for the challenger brands. However, the ramping up of local production in Pakistan, specifically for OPPO, vivo and Xiaomi, could help ease supply issues in the region. But it is unlikely to have any substantial effect in 2022.

Despite the underwhelming market performance in the first half of the year, there are some reasons to be cautiously optimistic about the rest of the year. Though inflation has reached double digits in many countries across MEA, it is not a new phenomenon and most customers have experienced these episodes in the recent past. This has brought them the ability to adapt quickly to the new economic realities. Also, we noticed that the average selling prices (ASP) of smartphones are continuing to trend up in the region, suggesting increasing digitization and customers’ need for more sophisticated handsets. The easing of the global semiconductor shortage, which led to severe product availability issues for MEA in 2021, is also expected to help the market find a stronger footing once the economic issues subside.

Counterpoint Research’s market-leading Market Monitor, Market Pulse and Model Sales services for mobile handsets are available for subscribing clients.

Feel free to contact us at press@counterpointresearch.com for questions regarding our in-depth research and insights.

You can also visit our Data Section (updated quarterly) to view the smartphone market share for WorldUSAChina and India.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts:

Yang Wang

 

Ravyansh Yadav

 

Follow Counterpoint Research
 

Global Annual Smartphone Market Grew for the First Time Since 2017; Record Annual Shipments for Apple

  • Global smartphone shipments grew 4% YoY to reach 1.39 billion units in 2021. Q4 2021 shipments declined 6% YoY to reach 371 million units.
  • Samsung led the global smartphone market in 2021 with annual shipments of 271 million units.
  • Apple, Xiaomi, OPPO^ and vivo recorded their highest-ever annual shipments.
  • The top five brands gained share thanks to a significant decline by Huawei, and LG’s exit from the market.
  • Apple surpassed Samsung to become the top smartphone vendor in Q4 2021, shipping 81.5 million units.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – January 28, 2022

The global smartphone market grew for the first time since 2017, with annual shipments reaching 1.39 billion units in 2021, according to the latest research from Counterpoint Research’s Market Monitor service. Despite the 4% annual growth, however, annual shipments remained below the pre-pandemic level due to continued COVID-19 impacts as well as component shortages.

Commenting on the overall market dynamics, Senior Analyst, Harmeet Singh Walia said “the global smartphone recovery in 2021 followed a pandemic-hit 2020 and subsequent pent-up demand in regions like North America, Latin America and India. Growth in the US was driven largely by demand for Apple’s first 5G-enabled iPhone 12 series seeping through to the first quarter of 2021; demand which continued throughout the year ending on a strong Q4 thanks to Black Friday and holiday season promotions. India, too, had a good year due to higher replacement rates, better availability and more attractive financing options in mid-to high-tier phones. However, China, the world’s biggest smartphone market, continued to decline due to supply-side issues caused by the ongoing component shortages, as well as demand-side issues resulting from lengthening replacement cycles.”

Singh Walia added, “the market recovery could have been even better if not for the component shortages that impacted much of the second half of 2021. The major brands navigated the component shortages comparatively better and hence managed to grow by gaining share from long-tail brands.”

  • Samsung shipped 271 million units in 2021, up 6% from 2020, mainly due to increased demand for its mid-tier A and M series smartphones. Samsung’s annual shipments grew despite supply-side issues starting with its Vietnam factory being shut in June due to COVID-induced lockdown. While its shipments grew YoY to reach 67 million in the last quarter, the growth was limited by intensifying competition from Apple and Chinese brands in some of its markets such as India and Latin America. Nevertheless, the brand gained a good mind share with the launch of its third-generation foldable phones that did well in the premium segment.
  • Apple’s global smartphone shipments grew 18% YoY to reach a record 237.9 million units in 2021 due to strong performance by the iPhone 12 series. Apple also grew in key markets such as the US, China, Europe and India. In China, it became the top smartphone brand in Q4 after six years thanks to the iPhone 13, consequently overtaking Samsung as the top smartphone globally in Q4 2021.
  • Xiaomi’s global smartphone shipments grew 31% YoY to reach a record 190 million units in 2021. The bulk of this growth was in the first half of the year, driven by regions such as India, China, South-East Asia and Europe. While its shipments declined in Q3 after a record Q2, it grew marginally in Q4 to ship 45 million smartphones despite slipping to the fifth position in China as it faces severe component shortages.
  • OPPO^ was another of the top smartphone players to achieve record 2021 shipments, growing by 28% YoY to 143.2 million units. Its performance in China remained strong in the first half of the year, while it grew in Europe, the Middle East and Africa and South-East Asia in the second half. However, shipments remained flat at 33.5 million units in the last quarter due to supply-side constraints.
  • vivo grew by 21% YoY to reach annual shipments of 131.3 million units in 2021. vivo leveraged its strong offline penetration and a wide-ranging product portfolio to achieve its highest-ever annual shipments globally. In Q4 2021, however, it declined by 9% YoY, as it lost the number one spot in the Chinese smartphone market to Apple.

Other OEMs also had a notable 2021.

Motorola was the fastest-growing brand among the top 10 smartphone OEMs based on annual global shipments. It took advantage of LG’s exit in the US, where it gained share in the sub-$300 price band by offering a strong lineup of widely available devices. It also continued to perform strongly in Latin America while expanding in overseas markets (including a resurgence in Europe).

realme entered the top five android OEMs globally for the first time as its affordable 5G strategy started to pay off. It also did well in markets such as India where it had a record year. The brand continued to expand its presence in new markets such as LATAM, Europe and the Middle East and Africa.

HONOR managed to finish its first full year as an independent OEM with a ranking among the top ten smartphone OEMs globally, and is already among the top five OEMs in China where it benefitted from the reinstation of its relationship with its suppliers since its separation from Huawei.

Transsion Group continued to perform well in its key markets such as South Asia and the Middle East and Africa. TECNO did well in the entry-tier, while Infinix gained the most in the entry-to mid-tier segment, especially in the countries where it is currently expanding. Going forward, Transsion’s fundamentals are expected to remain solid, as it continues to hold significant clout in its home market of Africa.

Research Director Jan Stryjak concluded, “2021 was a tough year, with component shortages adding further pressure to a market battling with lingering COVID-19 issues. However, the world is slowly getting on top of the pandemic, despite the threat of a resurgence towards the end of last year, and with supply issues hopefully coming to an end towards the middle of this year, there is reason to be optimistic for good growth in 2022 as a whole.”

^Note: OPPO includes OnePlus since Q3 2021

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

You can also visit our Data Section (updated quarterly) to view the smartphone market share for World, USChina and India.

Some of our latest regional smartphone market analyses:

India Smartphone Market Crosses 169 Million Units in 2021 to Register Highest Ever Shipments Till Date

Apple Reaches its Highest Ever Market Share in China

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