Enlarge / People weren't that interested in new smartphones in Q2 2022—unless they were the kind that cost more than $900. (credit: Getty Images)
Smartphone makers are reporting big downturns in smartphone buying, and analysts think it's because people are holding onto their phones longer. But the market is still high for expensive phones—people still like buying those.
Nearly every smartphone maker besides Samsung and Apple reported lower smartphone shipments in the second quarter (April-June) of 2022. Global smartphone shipments decreased 9 percent last quarter compared to 2021, according to International Data Corp. Chinese brands like Xiaomi, Vivo, and Oppo saw marked downturns. Xiaomi reported a 26 percent drop in smartphone shipments during the second quarter, with a similar drop in revenue.
Higher-end phones are increasing in market share and becoming even more important to manufacturer profits. (credit: Counterpoint Research)
In a Wall Street Journal report, analysts and company executives pointed to inflation, people leaving their homes more after a long pandemic, and a far softer Chinese market. Chip and component makers had recently reported similar kinds of demand dwindling, just as they were aiming to invest in more production facilities.
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