Global smartphone market 2022 experienced its worst third quarter since 2014
Global smartphone shipments fell 9% in the third quarter of 2022. The figure was the lowest in the global smartphone market 2022, in the last eight years and was due to the low purchasing power of most countries, Bloomberg reported, citing data from research firm Canalys.
“The global smartphone market experienced its worst third quarter since 2014 as economic woes forced consumers to put off discretionary purchases such as personal electronics. Global smartphone shipments fell 9% in the three months ended September, continuing a decline that lasted all of 2022,” the report said.
The global mobile phone market size was affected by several factors. Among the key ones are declining real incomes, lockdowns in China and an intensifying energy crisis that has forced citizens to spend more on various natural resources and electricity.
“Chinese players such as Xiaomi Corp., Vivo and Oppo registered double-digit drops in sales this year. Only Apple’s U.S. iPhones continue to show resilience in the market. Apple has increased its share of the global smartphone market to 18 percent in the past three months,” the article reported.
The market leader is still Korea’s Samsung Electronics Co. It accounts for 22% of global sales. However, the figures can be adjusted after the end of the traditional tech sale season, according to Canalys analyst Sanyam Chaurasia.
“In the run-up to the selling season, consumers who have been putting off purchases will expect steep discounts and package deals, as well as significant price reductions. Compared with the period of high demand in the previous year, a slow but steady holiday sale is expected in the fourth quarter,” he concluded.
On Oct. 7, South Korea’s Samsung Electronics Corp. said it was preparing for its first profit decline in three years because of the crisis. Reducing the operating profit of the company may reach 32% in the third quarter of 2022.
Earlier we reported that gold is gaining popularity in Asian markets.
Startups under threat worldwide after Silicon Valley Bank collapse
High-tech startups have been hit. Companies around the world are facing a fight for survival after the collapse of a major US investment bank, Silicon Valley Bank (SVB). There was a “huge disruption” in the industry globally, Bloomberg reported, citing market participants. The entire stock market, and the S&P 500 in particular, plummeted.
Startups under threat
The bankruptcy of the lending institution, in particular, affected the co-founder of startup Birdly Inc. Quang Hoang. The entrepreneur invested about $10 million in SVB and is still unable to repay the money four days after the bank was shut down by the California Department of Financial Protection and Innovation. However, the entrepreneur is far from the only one who has faced similar problems, the article specifies.
“Hoang was one of thousands of founders around the world this week trying to track down their money after days of chaos and who are completely rethinking the way they run their own businesses. Startups from Silicon Valley to London to Tel Aviv to tech hubs across Africa have depended on SVB as a one-stop store for everything from storing their fortunes to personal mortgages,” the story says.
Now investors and technology companies are predicting a complicated financial future for themselves, even if the bankrupt bank begins to attract deposits from customers under a new name. Many market participants faced a “financial payback” for their overreliance on the credit institution’s risky investment assets, the memo said.
On March 11, the California Department of Financial Protection and Innovation closed Silicon Valley Bank, a large investment bank based in Santa Clara County. All insured deposits from SVB were transferred to Deposit Insurance National Bank of Santa Clara. Depositors were expected to have access to their accounts by March 13.
Earlier we reported that the U.S. Department of Justice has begun an investigation into the circumstances of the collapse of Silicon Valley Bank.
U.S. Justice Department Opens Investigation into Silicon Valley Bank Collapse
The U.S. Justice Department is set to investigate the circumstances surrounding the bankruptcy of Silicon Valley Bank (SVB), which was the largest since the global crisis in 2008. The entire stock market collapsed, in particular the S&P 500. This was reported by The New York Times (NYT), citing two people familiar with the situation.
The sources of the newspaper noted that the investigation is at a very early stage, and it is not yet very clear what the focus of federal investigators and prosecutors will be.
Lawyers believe that the main point that may attract investigators is that a few weeks before the crash of SVB, several top managers sold their shares. The sale of securities brought the sellers millions of dollars.
Market experts pointed out that some top managers sold their shares by previously announced plans, so that such sales would not seem illegal. For this purpose, the date of sale of securities and their volume are chosen in advance. However, some politicians have already said that all of the bank’s top managers should return the money received from the sale of shares.
Earlier on Wednesday, the Wall Street Journal, citing its sources, wrote that creditors of the bankrupt bank SVB joined to make profits after the collapse of the financial institution.
Earlier, we reported that an American billionaire declared the collapse of American capitalism.
U.S. Billionaire Says ‘Collapse of American Capitalism’
Is the collapse of the U.S. economy coming? The Silicon Valley Bank (SVB) bailout package released by American regulators shows that American capitalism is “crumbling before our eyes”. Ken Griffin, founder of the hedge fund Citadel, told The Financial Times.
“There has been a loss of financial discipline because the government bailed out depositors completely. It would have been a great lesson in moral hazard. The loss to depositors would have been insignificant, and it would have increased the importance of risk management,” he said.
In Griffin’s view, the U.S. government should not have taken such drastic action. Griffin’s position contrasts with that of another senior hedge fund manager, Bill Eckman, who on March 13 urged the Federal Deposit Insurance Corporation to “clearly guarantee all deposits now,” warning that “hours matter.”
Eckman wrote on Twitter that “our economy will not function effectively without our community and regional banking system.”
The situation is already affecting the Euro / U.S. Dollar exchange rate.
We previously reported that The Fed announced an emergency bailout of the U.S. banking sector.
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