A drop in smartphone sales could lead to more advertising.

Canalys, a research firm, says you can expect to see a lot of new smartphone deals and bundles in the second half of 2022, as companies try to make up for the fact that smartphone sales in North America are falling. A study from Canalys shows that the number of smartphones shipped in North America dropped by 6.4% in the second quarter of 2022, when 35.4 million units were sent out.

This drop can be explained by problems with the economy and high inflation. Runar Bjrhovde, a research analyst at Canalys, said that high inflation, a drop in consumer confidence, and a slowing economy are all reducing demand in North America, which used to be the most stable market in the world.

Because of the economy, people are having to rethink what they buy.Now, people are more likely to buy low-end or high-end devices, leaving a gap in the market for mid-range devices.

Brian Lynch, a research analyst at Canalys, said that the iPhone SE (3rd Gen), Galaxy A53, and Galaxy 33 didn’t do as well as expected because consumers who would usually buy devices between $250 and $600 are now forced to look at cheaper options. But the low-end market and the high-end market stayed the same.

“At the low end, demand is still strong, but there is a lot of competition between sellers. Motorola’s updated G Power, Samsung’s A13 models, and TCL’s new phones for Tracfone, Verizon, and T-Mobile all offer low-cost options that are becoming more popular “said Lynch. “The high end also kept doing well, with Apple’s iPhone 13 series and Samsung’s Galaxy S series finding new markets.”

In Q2 2022, Apple and Samsung had nine of the top ten models sold in North America. Even though shipments as a whole went down, Apple grew 3% each year and Samsung grew 4%. Lynch says that low-end market challengers who want to grow their share of the market and keep their carrier slots will have to work hard to get customers’ attention.

He said, “Vendors are expected to put a lot of money into marketing and offer deals and bundles to speed up sales.”

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