According to a new analytical report this afternoon, worldwide smartphone shipments fell 9% year on year in Q2 2022. Demand has started to wane following economic headwinds and regional uncertainty.

Samsung took first place with a 21% market share as it strengthened its low-end A series supply. Apple came second with a 17% share as the iPhone 13 remained in high demand. Both Apple and Samsung grew market share by 3% over 2021.

On the flipside, Xiaomi, OPPO and vivo continued to struggle in China, suffering double-digit declines to take 14%, 10% and 9% market shares respectively, as presented in the chart below.

“Falling demand is causing great concern for the entire smartphone supply chain,” said Canalys Analyst Toby Zhu. “While component supplies and cost pressures are easing, a few concerns remain within logistics and production, such as some emerging markets’ tightening import laws and customs procedures delaying shipments. In the near term, vendors will look to accelerate sell-through using promotions and offers ahead of new launches during the holiday season to alleviate the channel’s liquidity pressure. But in contrast to last year’s pent-up demand, consumers’ disposable income has been affected by soaring inflation this year. Deep collaboration with channels to monitor the state of inventory and supply will be vital for vendors to identify short-term opportunities while maintaining healthy channel partnerships in the long run.” For more, read the full report by Canalys.

The company’s chief financial officer, Luca Maestri, warned in April of challenges the company is facing this quarter, including supply constraints that could hit total sales by up to $8 billion. But the steady appetite for the iPhone 13 suggests phone revenues may be strong despite Maestri’s warning.