Apple’s global handset market up 3% year-over-year thanks to ‘downturn resistant’ iPhone

Global handset market revenues declined for a second consecutive quarter, falling 2% year-over-year (YoY) and 15% quarter-over-quarter (QoQ) to US$95.8 billion in quarter two (Q2) 2022, according to the latest research from Counterpoint’s Market Monitor service. However, Samsung and Apple’s revenues grew 25% and 3% YoY, respectively.

Canalys says a fall in global handset shipments due to factors including Chinese lockdowns and ongoing geopolitical uncertainty caused the revenues to decline despite the average selling price (ASP) going up by 6% in the same period. Consequently, the annual operating profit growth of 6% corresponded with ASP growth rather than shipment decline, reaching $13.1 billion in Q2 2022, according to the research group.

Given that handset revenues as well as profits are largely driven by Apple, Canalys says we can expect a growth in both the aspects in the second half of the year.

“Revenue growth in the second half of the year, when compared to the first half, is a near certainty due to the cyclical launch of the highly profitable and relatively economic downturn-resistant iPhone,” says Associate Director Jan Stryjak. “But with geopolitical uncertainty worsening, inflation levels rising and fears of recession growing, the handset market is bound to get impacted and may take longer to return to the trajectory predicted prior to the pandemic.”