A new study has revealed that the total sales of smartphones will most likely fall by 3 percent year on year. This smartphone market is expected to shrink to 1.36 billion units in 2022. These figures have been predicted by a Counterpoint
A new study has revealed that the total sales of smartphones will most likely fall by 3 percent year on year. This smartphone market is expected to shrink to 1.36 billion units in 2022. These figures have been predicted by a Counterpoint Research. Also Read - Global refurbished smartphone market records 15% YoY growth in 2021, Apple takes lead
According to Counterpoint Research’s Global Smartphone Quarterly Shipment Forecast the overall supply situation is expected to gradually improve in 2022 compared to the previous year, although shortages of components have not been resolved yet. Looking at the macroeconomic involved in smartphone sale, the chances of recovery are now falling sharply. Furthermore, concerns are spreading centered on China’s prolonged recession and the Ukraine crisis. This the primary reason why Counterpoint has reached this conclusion. Also Read - Best camera smartphones under Rs 50,000 in India
The report suggests that China’s zero-tolerance approach towards the latest Covid -19 resurgence, with lockdowns of cities and even entire regions, has been slowing down its economy, besides causing a chain reaction across the global economy due to the country’s closed factories and rising logistics costs. Also Read - Amazon Mobile Savings Days 2022: Up to 40 percent off on top-selling smartphones, accessories, more
The Russo-Ukrainian war is another important aspect that is harming global economies. Consumer sentiment has contracted significantly recently due to the spread of global economic uncertainty. The cascading impact of a strong US dollar will also heavily impact emerging countries.
Peter Richardson, Vice President at Counterpoint Research, said, “For the long term, we continue to expect a steady migration from feature phones to smartphones, and 3G/4G to 5G smartphones. As efforts to spread low- and mid-priced 5G devices continue, the global market for 5G devices is expected to show healthy growth and act as a significant driver of the overall smartphone market. Operators are actively promoting 5G, and the incentives are sufficient in many markets to cause consumers to switch to the new technology. However, the recent global inflation trends are hitting the consumer demand and smartphone BoM costs, acting as a risk for the 2022 smartphone market.”
Senior Analyst Liz Lee added, “However, the outlook for a smartphone market recovery in the second half still stands. At the end of May, the Chinese government convened a meeting for large-scale economic stability countermeasures. The government is expected to implement more aggressive policies to stimulate the economy in the second half. Besides, we believe that new foldable smartphone launches, led by Samsung, will be able to stimulate demand in the premium segment.”Global smartphone sales to drop by 3 percent in 2022: Report View Story