In one quarter, the production of smartphones fell by 12.8% due to multiple factors. According to TrendForce, this situation allowed Samsung to overtake Apple in production volume during the first quarter of 2022.
Specifically, TrendForce says global smartphone production slumped to 310 million units in the first quarter of the year. This drop can be explained in particular by the war in Ukraine, the new confinements in China and the overall decline in public confidence.
Nevertheless, Samsung not only benefited from the successful launch of its Galaxy S22 line, but also from easier access to entry-level 4G chips.
Not everything is rosy for Samsung either
In addition, Samsung relies on production sites located in Vietnam and India rather than China. And its market share in China is only 1%. The company was therefore able to better withstand the Chinese problems and overtake Apple by selling 73.8 million units during the quarter.
Apple, meanwhile, reportedly made 60 million units in the first quarter of the year, an 11.1% increase from the same period in 2021, but still not enough to stay ahead of Samsung. The company has been particularly affected by the lockdowns due to the resumption of the Covid-19 pandemic in China, and some sources mention that these could also end up affecting the next iPhone 14.
But all is not rosy for Samsung either. The company was number one in sales in Russia, but sanctions against Russia following its invasion of Ukraine forced it to halt all deliveries. This should put downward pressure on Samsung over the coming quarters.
An unstable context
Apple had better not get used to this second place either, as TrendForce predicts that Chinese smartphone brand Xiaomi will drop from its current third place in the second quarter of this year to dethrone Apple.
Oppo and Vivo respectively occupy the fourth and fifth places on the list.
TrendForce predicts that the global smartphone production volume in the second quarter will be around 309 million units – a number roughly equal to that of the first quarter. However, with war, inflation, weakening consumer confidence and the proliferation of Covid, everything is unpredictable and open to downgrades.
Source: ZDNet.com