The global smartphone handset market’s revenue declined 3 per cent (on-year) in Q3 2022 to just above $100 billion, according to latest research.
A steeper revenue decline was prevented by a 10 per cent YoY revenue growth of Apple. Consequently, the 5G revenue share reached an all-time high of 80 per cent, according to Counterpoint Research.
The record shipment contribution (46 per cent) of 5G handsets, which cost five times an average non-5G handset, also added to the average selling price (ASP) and revenue growth.
In terms of shipments, the overall handset market saw a 12 per cent YoY decline during the quarter.
“At over $80 billion, the revenue contribution of 5G handsets reached an all-time high of 80 per cent of global handset revenues, up from 69 per cent in the third quarter of last year,” said senior analyst Harmeet Singh Walia.
In the same period, LTE handsets’ revenue contribution fell 10 per cent to $19 billion.
This shift from 4G to 5G has been led by Apple, which alone makes up for over half of all 5G revenues as over 95 per cent of its phones are 5G-enabled,” said Walia.
Samsung, the second biggest handset OEM in terms of revenue, saw a relatively modest ASP increase of 2 per cent YoY in Q3 2022 despite an almost doubling of the shipments of its premium Flip and Fold series in the same period as well as a 27 per cent YoY revenue growth of its 5G smartphones.
With China being the single biggest market for OPPO and vivo, the ongoing Covid-19 and economic issues in the country resulted in a significant revenue decline YoY.
Xiaomi’s handset revenue grew 4 per cent YoY, a significant portion of which came from the low-to-mid price bands.