US Smartphone Sales Slump in January on Fewer Device Upgrades, Counterpoint Finds

Logo of an Apple store is seen as Apple Inc. reports fourth quarter earnings in Washington, US, January 27, 2022. (Reuters)
Logo of an Apple store is seen as Apple Inc. reports fourth quarter earnings in Washington, US, January 27, 2022. (Reuters)
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US Smartphone Sales Slump in January on Fewer Device Upgrades, Counterpoint Finds

Logo of an Apple store is seen as Apple Inc. reports fourth quarter earnings in Washington, US, January 27, 2022. (Reuters)
Logo of an Apple store is seen as Apple Inc. reports fourth quarter earnings in Washington, US, January 27, 2022. (Reuters)

US smartphone sales plunged 10% in January on weak demand for cheaper Android devices and as customers delayed upgrades ahead of the launch of Samsung Electronics' Galaxy S24 series, according to data from Counterpoint Research.

The research firm said U.S. smartphone sales last month were nearly half of the record levels seen in the same period in 2017, underscoring fears that the market may have peaked.

"Tough times in the volume-driven low-end coupled with delayed upgrades in anticipation of new products drove the market lower," said Maurice Klaehne, senior analyst at Counterpoint Research.

Smartphone sales have waned after the pandemic-driven boom, as an uncertain economic outlook and lack of major new features led consumers to stick with their existing devices.

Samsung has tried to drum up interest for its new Galaxy smartphones, which went on sale on Jan. 17, by offering multiple artificial intelligence (AI) functions including a two-way voice translation in real-time.

Counterpoint said the S24 series has performed well in the US market during the initial 1-2 weeks of launch, and that it could spark a rebound in smartphone sales in February.

Apple, meanwhile, continued to gain market share in the US last month, thanks to promotional offers for its iPhone 15 series, and as cost-conscious consumers sought its older iPhone 11 and iPhone 12 devices, whose prices have come down.

"This combination is enabling Apple to maintain stability in a market experiencing double-digit declines," Counterpoint said.



No Need for One Country to Control Chip Industry, Taiwan Official Says

Semiconductor chips are seen on a printed circuit board in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
Semiconductor chips are seen on a printed circuit board in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
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No Need for One Country to Control Chip Industry, Taiwan Official Says

Semiconductor chips are seen on a printed circuit board in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
Semiconductor chips are seen on a printed circuit board in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo

There is no need for one country to control the semiconductor industry, which is complex and needs a division of labour, Taiwan's top technology official said on Saturday after US President Donald Trump criticized the island's chip dominance.

Trump repeated claims on Thursday that Taiwan had taken the industry and he wanted back in the United States, saying he aimed to restore US chip manufacturing.

Wu Cheng-wen, head of Taiwan's National Science and Technology Council, did not name Trump in a Facebook post but referred to Taiwan President Lai Ching-te's comments on Friday that the island would be a reliable partner in the democratic supply chain of the global semiconductor industry, Reuters reported.

Wu wrote that Taiwan has in recent years often been asked how its semiconductor industry had become an internationally acclaimed benchmark.

"How did we achieve this? Obviously, we did not gain this for no reason from other countries," he said, recounting how the government developed the sector from the 1970s, including helping found TSMC (2330.TW), now the world's largest contract chipmaker, in 1987.

"This shows that Taiwan has invested half a century of hard work to achieve today's success, and it certainly wasn't something taken easily from other countries."

Each country has its own speciality for chips, from Japan making chemicals and equipment to the United States, which is "second to none" on the design and application of innovative systems, Wu said.

"The semiconductor industry is highly complex and requires precise specialization and division of labour. Given that each country has its own unique industrial strengths, there is no need for a single nation to fully control or monopolise all technologies globally."

Taiwan is willing to be used as a base to assist "friendly democratic countries" in playing their appropriate roles in the semiconductor supply chain, Wu said.