it is Expected that this year global smartphone shipments will fall 11.9 percent – the largest annual decline in history.
In a recent forecast by market research firm IDC expects that shipments will reach 1.2 billion in 2020, compared to slightly less than 1.4 billion in the past year. Annual forecast follows a record fall of 11.7% year on year. IDC has drastically revised its annual February forecast, when was the first outbreak of the virus. Then the reduction in supply is expected to reach 2.3%.
supply and demand was affected by the pandemic coronavirus, the IDC forecast indicates that sales growth and deliveries in 2021, assuming some purchases now postponed, but not canceled entirely. The spread of mobile networks of the fifth generation will also contribute to the revival of consumer interest, the researchers say.
The IDC concluded that in the beginning of the quarter issue of the supply current, but then the global economic crisis caused by the pandemic coronavirus that has already affected demand. A further fall in the market was stopped only by the status of the smartphone as indispensable in human life of the gadget, the researchers said.
According to IDC, the domestic market of China will experience a definite decline, which indicates that the reconstruction of the country after the initial outbreak. In China saw a decline by 20.3% year on year, and this had a huge impact on the overall market as this country accounts for almost a quarter of the world’s supply, according to IDC. Most of China was closed in Feb for a long period in the framework of the country’s efforts to curb the outbreak.
global dependency on Chinese components for smartphones and Assembly lines also caused big problems during the last quarter, and shipments in the US and Western Europe fell by 16.1% and 18.3%, respectively, said IDC.
“it is Expected that 5G will be a catalyst throughout the forecast period, which will play a vital role in the recovery of the global smartphone market in 2021,” say analysts at IDC.
As reported by Gartner analysts, in I quarter of 2020 was delivered by 20.2% fewer devices than during the same period of 2019. The decline recorded almost all of the five largest manufacturers of smartphones, with the exception of Xiaomi. Samsung, Huawei and Oppo have received double-digit drop — 22,7%, 27,3% and 19,1%, respectively, Apple was 8.2%.
the Only company that showed even a slight increase (1.4 percent) were Chinese Xiaomi, many thanks to the demand for inexpensive models in the international market. All other manufacturers, the volume of shipments in the I-th quarter of the year fell by 24.2%, writes TechCrunch, citing a report.
the New line 11 iPhone helped Apple to confidently begin the year, but the outbreak and quarantine measures put an end to further growth. “If not for COVID-19, the volume of iPhone sales likely would have reached a record level this quarter, said Gartner analyst Annette Zimmerman. — Disturbances in the supply chain and reduced consumer spending stopped this positive trend in February.”
the Situation with COVID-19 is still uncertain, however, some signs of market recovery can already be traced. “Apple’s ability to serve customers through online stores, as well as the return of production to normal levels at the end of March helped to partially restore the earlier positive trend,” — said in Gartner.