Canalys: Q3 U.S. smartphone market shipments were 31 million units, a year-on-year decrease of 5%

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According to a recent report published by market research firm Canalys, the US smartphone market experienced a 5% year-on-year decrease in shipments during the third quarter of 2023. Despite the decline, the market showed signs of recovery with a 21% quarter-on-quarter growth, reaching a total of 31 million units. The surge in shipments can be attributed to the release of Apple’s latest iPhone models and carrier promotions targeting premium device upgrades.

While the US smartphone market is stabilizing, Canalys Analyst Runar Bjorhovde noted that a turnaround in the fourth quarter is not expected. The wireless telecommunications industry in the US continues to face challenges, impacting device promotions and subsidies. Despite the addition of postpaid subscribers and higher upgrade rates from tier-1 carriers, device sales still lag behind last year’s figures.

Carriers are shifting their focus toward driving service revenue through flexible plans and customer retention initiatives. As a result, they have adopted a cautious approach towards aggressive device promotions in the third quarter, and this trend is expected to continue into the holiday season.

In terms of individual smartphone brands, Apple experienced a modest decline of 8% in shipments, amounting to 17.2 million units. The delayed release of the iPhone 15, compared to the timing of its predecessor, contributed to the decline. Samsung, on the other hand, saw a slight recovery in volume compared to Q2 2023, shipping 6.8 million units. The performance was boosted by its new foldable devices, which accounted for over 20% of its shipments.

Motorola achieved its best quarter performance since Q2 2022, capturing a 9% market share and achieving 14% year-on-year shipment growth. TCL and Google Pixel rounded out the top five, each capturing a 4% market share and shipping 1.3 million and 1.2 million units, respectively.

Interestingly, Canalys Analyst Le Xuan Chiew highlighted a growing trend among consumers of purchasing refurbished devices or opting to keep their current phones longer. While the iPhone 15 series had a strong start in September 2023, accounting for 34% of all iPhone sales in the US during Q3, fewer users are choosing to upgrade to the latest models.

Given the prevailing sluggishness of the US market, Canalys anticipates a mild recovery in 2024. Carriers’ current strategies, such as focusing on postpaid offerings and reshaping prepaid business structures, will have implications for consumer purchase behavior. The report suggests that the adjustments made by carriers in 2023 could mark the beginning of significant shifts in the market’s channel dynamics, prompting vendors to prepare accordingly.

Overall, the Canalys report sheds light on the US smartphone market’s performance in the third quarter of 2023. Although facing a year-on-year decline, the market showed signs of recovery with sequential growth driven by Apple’s latest iPhone release and carrier promotions. As the market stabilizes, industry players will need to adapt their strategies to address changing consumer behaviors and navigate the evolving dynamics of the US smartphone landscape.