Samsung sole winner as US smartphone market hits sixth quarterly decline in a row

The US smartphone market registered yet another year-over-year decline in shipments in the first calendar quarter, this time down eight percent compared to Q1 2023.by Counterpoint Research, which says the drop was partially due to supply chain issues pushing iPhone 14 shipments from Q4 2022 into Q1 2023, resulting in an unusually high base for comparison.

However, the market analysts also say there are other factors at play that indicate falling demand for smartphones, such as declining sales in the sub-$300 segment as carriers put more emphasis on higher-end, 5G-capable phones. "Overall Android shipments decreased YoY, with the market's low end continuing to see consolidation and decreasing new product launches due to LTE devices being phased out in favor of 5G models in carrier channels," said Counterpoint senior analyst Maurice Klaehne."The added costs of 5G connectivity make it challenging for OEMs to compete in the low-end space."

At the same time, upgrade rates are also low for US consumers, who are sticking with their older phones. IDC estimated earlier this year that users areAlmost all brands saw their shipments fall in the quarter, including Apple, Google, TCL, and myriad small vendors. However, Samsung uniquely saw a year-over-year boost in shipments thanks to its S24 lineup. The Korean phone maker's market share jumped from 27 percent to 31, at the expense of Google, TCL, and small brands.

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