[Mobile phone and related parts] Preliminary smartphone sales figures for July 22
• Global smartphone sales fell 16% YoY.
It posted a 16% decline for the second month in a row, but continued inflation and geopolitical risks dampened consumer sentiment.
All regions including the US, China, India, and Europe showed a decrease compared to the same month of the previous year.
• China's sales volume declined 10%YoY, sluggish.
A decrease of 8% MoM in the aftermath of the 618 Shopping Day effect in MoM.
As CAICT's July shipments have not been announced yet, it is difficult to estimate channel inventory.
However, even if inventory is reduced this month, it seems unlikely that shipments will rebound for the time being.
• The US market shrank 5% YoY, which appears to have been affected by inflation.
However, with the start of the new semester, it rose 3% MoM.
Apple's sales volume declined 15%YoY, while Samsung Electronics' sales increased 12%YoY.
In Samsung Electronics, the S22 is enjoying a base effect due to the sluggishness of its predecessor, the S21.
• India sales decreased 13% YoY. Although sales were sluggish due to inflation, inventories are still estimated to be high.
However, with the arrival of the new school year and the festival period in India, we expect sales to increase after August.
The variable is the Indian government's check on Chinese smartphones under US$150, but considering product portfolios/distribution networks/services, it is difficult for Indian companies to replace them in the short term.
• European sales fell 29% YoY. The macroeconomic environment in Europe continues to deteriorate.
Inflation levels and overall cost of living continue to rise due to the Russia-Ukraine conflict.
With high interest rates and record energy prices expected to be tough winters and the growing likelihood of a recession in many countries, many consumers are prudent in their discretionary spending.
• Apple's sales volume fell 9%YoY, but considering that the 13-series sold better than the 12-series, we believe the legacy models' sales volume is low.
The 11-month cumulative sales of the 13 series were 155 million units, more than the 12 series sold 142 million units during the same period. The combined proportion of Pro Max and Pro is 47%
• Samsung Electronics' sales volume fell 1% YoY. SEC's YoY growth rate has been better than the global average for the past eight months, except for February.
The 6-month cumulative sales of the Galaxy S22 were 15.1 million units (7.34 million ultra, 2.87 million plus, 4.89 million units), higher than the 14.35 million units sold during the same period of the S21.
Ultra's share was 49%, accounting for half of it.
• Sales in all regions were also sluggish in July. The rate of decline from the same month of the previous year also reached 16% for two consecutive months.
China still needs inventory adjustment, and Europe is expected to be sluggish for the time being due to the prolonged Russia-Ukraine crisis and its aftermath.
The US and India, which were doing well, are also beginning to be affected by inflation.
Points to pay attention to in August are whether China's distribution inventory declines, whether the YoY decline in global sales will ease, and the initial sales volume of Samsung Electronics' Galaxy Z series.
