Global Smartphone Sales Fall Below 100 Million Units Amid Ukraine Crisis, China Slowdown
Global smartphone market sales declined 4 per cent Month on Month (MoM) and 10 per cent Year on Year (YoY) in May 2022 to 96 million units, the second consecutive month of MoM decline.
Global smartphone market sales declined 4 per cent Month on Month (MoM) and 10 per cent Year on Year (YoY) in May 2022 to 96 million units, the second consecutive month of MoM decline and the 11th consecutive month of YoY sales fall in smartphones, a new report said. According to Counterpoint Research’s Market Pulse Service report, even after a “V” shaped recovery following the first COVID-19 wave in 2020, the smartphone market has still not reached the pre-pandemic levels, courtesy of inflation, China’s slowdown, and the Ukraine crisis.
In 2021, the smartphone market was impacted by supply constraints and persistent COVID waves. In 2022, the component shortages, although not fully resolved, have been stabilising.
“The demand for a smartphone especially in the advanced economies is driven by replacement, which makes it a discretionary purchase. And inflationary pressures are leading to pessimistic consumer sentiment around the globe with people postponing non-essential purchases, including smartphones. The strengthening US dollar is also hurting emerging economies. A segment of consumers is likely to wait for seasonal promotions before purchasing to offset some of the cost pressures," Tarun Pathak, Research Director, Counterpoint Research, said in a statement.
The low demand is also leading to inventory build-ups leading to declining shipments and order cuts from smartphone manufacturers. The second quarter is likely to be the most heavily impacted this year in terms of sales before the situation improves in H2.
“China’s lockdowns and prolonged economic slowdown has been hurting domestic demand as well as undermining the global supply chain. The smartphone market in China recovered slightly month on month in May as lockdowns eased, however, it remained 17 per cent below May 2021. There may need to be a new baseline market size defined for China’s smartphone market. Added to this is the uncertainty created by the Russia-Ukraine crisis, which is hurting demand in Eastern Europe. None of the OEMs seems to be spared from the negative impact on demand caused by a mix of these factors," said Varun Mishra, Senior Analyst, Counterpoint Research.
Top Headlines
