New research reveals that worldwide smartphone shipments declined 7.8% year over year to 265.3 million units in the second quarter of 2023. 

This is according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker. 

While this marks the eighth consecutive quarter of contraction as the market struggles with soft demand, inflation, macroeconomic uncertainties, and excess inventory, the rate of decline is slowing compared to previous quarters.

Nabila Popal, Research Director with IDC's Mobility and Consumer Device Trackers, says: "The good news is that inventory levels are improving and the latest market chatter suggests that by Q3 excess inventory in finished devices and components should clear up."

"As inventory levels normalize, we are finally hearing optimism from key OEMs and supply chains and expect the market to return to growth by the end of the year and into 2024. As the market ramps back up, it is also an opportunity for vendors to gain a share."

"IDC expects a shift in the vendor rankings at the bottom of the stack, as we already see happening this quarter with Transsion entering the Top 5 for the first time," says Nabila Popal.

The data found that China witnessed a year-over-year decline of 2.1% in 2Q23 after five quarters of significant double-digit contractions. While this is better than past quarters, consumer sentiment and spending remain low.

Even the 618 online shopping festival in June, expected to boost sales in China, saw a 6.5% year-over-year drop in smartphone sales.

The other large regions, including Asia/Pacific (excluding Japan and China), the United States, Europe, the Middle East, and Africa (EMEA), also saw shipments decline by 5.9%, 19.1%, and 3.1% in 2Q23.

Anthony Scarsella, Research Director of Mobile Phones at IDC, says: "Although the first half of the year has presented many challenges to the market, we believe that there remains plenty of opportunity awaiting in the second half of the year." 

"The foldable market remains an exciting product to consumers, and the arrival of new models and new vendors joining the race will hopefully translate to wider adoption and lower prices." 

"Moreover, we expect the foldable market to grow nearly 50% in 2023 while the total market remains down," says Anthony Scarsella.

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. 

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