No amount of new, flashy smartphones can get consumers excited right now.
The smartphone market saw shipments fall by 24% in the second quarter, the third consecutive period in which they slipped, according to Counterpoint Research.
The biggest losers were Samsung, Motorola and Alcatel, a budget phone maker better known for its TCL televisions. Apple also saw a slight decline, but held up relatively well compared to its Android rivals.
The data underscores dwindling excitement in smartphones, once the hottest product in the market with a slew of live events dedicated to launches virtually every other month. Now, only Apple and Samsung are able to muster interest with their events.
“Consumer demand for smartphones was tepid in Q2 2023, with the summer slump in sales coming early,” said Counterpoint Research analyst Matthew Orf.
Samsung just held its Unpacked event on Wednesday and unveiled its new Galaxy Z lineup, which include the Galaxy Z Fold 5 and Z Flip 5, which offer improvements to the screen to make them more effective media devices for cord cutters.
Orf noted that while the overall market is languishing, foldables — once seen as a novelty or gimmick — are seeing growth. He noted that shipments of foldable phones could reach their highest level ever in the US in the third quarter.
Apple, meanwhile, stayed resilient due to strong promotions offered by the carrier on the iPhone 14, the firm said.