Counterpoint Research Aggregated Report
Revenue of $95.8 Billion... 2% Decrease YoY
Samsung and Apple Drive Average Selling Price Increase
[Asia Economy Reporter Cha Min-young] In the past Q2 global mobile phone market sales reached $95.8 billion, down 2% year-on-year and 15% quarter-on-quarter. However, operating profit rose 6% year-on-year to $13.1 billion as the average selling price (ASP) of products increased, led by Samsung Electronics and Apple.
According to the Market Monitor recently released by global market research firm Counterpoint Research on the 6th, the global mobile phone market sales in Q2 were $95.8 billion, down 2% year-on-year and 15% quarter-on-quarter. This marks a decline for two consecutive quarters.
China's lockdown policies and geopolitical uncertainties led to a decrease in global mobile phone shipments, which in turn caused a decline in sales. However, the global mobile phone market operating profit in Q2 2022 was influenced more by the increase in average selling price during the same period than by the shipment decline, recording $13.1 billion, up 6% year-on-year.
Researcher Halmit Singh Walia noted, "The decline in global mobile phone shipments affected the sales scale. However, brands like Samsung Electronics and Apple have raised the overall average selling price, and some Chinese brands such as Xiaomi, Lenovo, Honor, Huawei, and Transsion have shifted their focus to higher-priced products compared to last year, resulting in an increase in overall operating profit compared to the same period last year."
He added, "Although major brands except Xiaomi have increased operating profit margins through price hike strategies, considering that the market was weak last year due to COVID-19, it does not mean the market is showing continuous growth."
However, mobile phone market sales and operating profits are expected to increase in the second half of this year. This is because mobile phone market sales and operating profits tend to be led by Apple. Apple unveiled the iPhone 14 series at its September Apple Event.
Researcher Jan Strijak said, "Since the highly profitable and recession-resistant iPhone is released periodically in the second half of the year, sales growth in the second half compared to the first half is almost certain. However, as geopolitical uncertainties worsen and fears of inflation and recession grow, the mobile phone market is inevitably affected, and it may take longer to return to pre-pandemic levels."
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