Samsung Outshines Competitors in Sluggish Smartphone Market with Growth in Production

Samsung emerges as a standout performer in the struggling smartphone market, as per the latest data from TrendForce. The global smartphone production during the first quarter of 2023 witnessed a significant 19.5% year-on-year decline, reaching historically low levels since 2014.

In contrast, Samsung managed to achieve a modest growth in production during this challenging period, primarily driven by the successful launch of the Galaxy S23. The company recorded a commendable figure of 61.5 million units, reflecting a 5.5% increase compared to the previous quarter. However, TrendForce forecasts a subsequent drop of nearly 10% in production for Samsung during the second quarter, citing weak demand for new models as the contributing factor.

Apple, on the other hand, faced a substantial decline in smartphone production in the first quarter, witnessing a 27.5% drop compared to the previous quarter. The delivery of 53.3 million iPhones was largely dominated by the iPhone 14, which accounted for approximately 78% of the total. Anticipating customer expectations for the upcoming new generation, Apple’s production is projected to decrease by 20% in the second quarter, following the cyclical pattern.

Other brands, such as OPPO (including Oppo, Realme, and OnePlus), strategically reduced their production by 17% in the first quarter, amounting to 26.8 million units. However, with effective inventory management and a moderate recovery in demand across Southeast Asia and other regions, TrendForce predicts a substantial increase of over 30% in production for these brands during the second quarter.

Xiaomi experienced a quarterly drop of 27.4% in production, resulting in 26.5 million units in the first quarter. Similarly, Vivo recorded a production volume of 20 million units, indicating a quarterly decline of 14.2%. The economic downturn has led to heightened activity in the used and refurbished phone markets, which might impede the growth of smartphone production in the second quarter.

Looking ahead, Samsung is poised for a resurgence with the anticipated launch of the Galaxy Z Flip5, Fold5, along with the Galaxy Watch 6 and Galaxy Tab S9 tablet. While the official announcement is yet to be made, the event is speculated to occur towards the end of July, offering potential opportunities for Samsung to regain its momentum in the market.