According to a recent report, the Global Smartphone Market sales are consistently suffering. A sales drop of 4% was recorded MoM (Month on Month) and around 10% YoY (Year on Year) in May 2022.
May was also recorded as the second consecutive month of the decline month-on-month and the 11th month for the YoY Decline. The decline is due to numerous factors, including inflation, the Ukraine crisis, and China’s slowdown, which are the prime culprits of the situation.
In May 2022, Global Smartphone shipments dropped to only 96 million units per the recent report from market research firm Counterpoint. It is the first time since the first and second quarters of pandemic 2020 that the sales of smartphones have recorded below 100 million.
The reasons for the downfall
Tarun Pathak, research director, states, “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.”
“A segment of consumers is likely to wait for seasonal promotions before purchasing to offset some of the cost pressures,” Pathak added.
The Lockdown in China, and the Ukraine crisis have also heavily influenced the Smartphone market. The Chinese lockdown measures have hurt domestic demand and hampered the global supply chain. Similarly, Russia’s war ovein Ukraine is also a major cause of demand decline in Eastern Europe.
As per the Counterpoint macro index, the global smartphone will consistently bleed throughout summer. Although, it is expected to make a comeback during Q2 mainly because of improved state affairs in China with an improvement in supply-demand balance in the technology’s supply chain.