The global handset market experienced a 12% year-over-year fall in shipments between July and September, according to a report by Counterpoint Research. Additionally, the third quarter of 2022 saw a notable 3% year-over-year decline in the worldwide smartphone market's revenue to little over $100 billion, even though within the same time span the average selling price (ASP) increased by 10%.
The revenue contribution of 5G handsets achieved an all-time high of 80% of worldwide smartphone revenues at over $80 billion, up from 69% in the third quarter of previous year, according to Senior Analyst Harmeet Singh Walia (via ET Telecom). LTE phones contributed $19 billion in revenue during the same time period. The research agency also stated that the premium segment's resiliency in the face of economic uncertainty, along with the substantial shipment contribution of 5G devices (46%), which cost five times as much as the typical non-5G handset, helped lift ASP and revenue.
Drop in Smartphone Shipments YoY
Since more than 95% of Apple's smartphones are 5G-enabled, Walia claims that the company has taken the lead in the transition from 4G to 5G. Apple alone accounts for more than half of all 5G revenues. He continued by saying that Apple experienced a 10% YoY revenue rise and a 7% YoY ASP growth in Q3 2022, both of which helped to raise the worldwide handset ASP overall.
According to the report, Samsung, the second-largest handset OEM, saw a modest 2% year-over-year gain in average selling price in Q3 despite doubling the number of its premium Flip and Fold series models shipped and experiencing a 27% year-over-year revenue growth for its 5G devices. Additionally the report stated that, the company's focus was shifted away from the more lucrative S22 series and toward the still-upcoming foldable series, which is why Samsung's ASP grew at a slower rate.
Oppo and OnePlus both had ASP and revenue declines of 5% and 27% over the prior year, respectively, and COVID was the primary cause of this. While sales of Xiaomi's smartphones increased by 4% year over year. The shipping share of the price band above $300 decreased by nearly 1.5%. As a result, Xiaomi's ASP increased 14% over the previous year to $205.