Covid-19 pandemic leads with worst-ever shrinkage of international smartphone market
International smartphone shipments dropped as fast as they ever did in Q1 2020. The overwhelming effect of the global pandemic is the apparent reason for this crisis in both sales and production, illustrating the devastating impact of Covid-19 on both consumption and production in this crucial sector of the tech industry.
As per Strategy Analytics and IDC Shipments analytical data, shipments totaled about 275 million in the first quarter of 2020, which amounts to 11-17% decline versus 2019, which is a variation associated with the data being estimated for different manufacturers. Both research companies believe the decline to be mostly related to the Covid-19 epidemic that has shaken up the global economy, including damage to the supply chain. Asian factories were forced to close for an unclear period of time in order to restrict the spread of the virus. The demand was impaired as well as production, with retail stores all over the world closed down amid lockdowns.
IDC research director Nabila Popal stated that while the problem had initially started with the supply issues on the Chinese side, towards the end of the quarter it swirled into an international problem, where the demand had also been impaired.
According to Bellwether electronics components supplier Murata Manufacturing Co statement in mid-April, most of its customers planned to maintain order volumes and road maps through the rest of 2020, but on Thursday that outlook was revised, and an estimate of a 10% drop in demand for the current financial year was .
Chairman Tsuneo Murata claimed that the outlook is very hard to foresee at this point.
IDC’s analysts found Apple’s iPhones mostly at the same level as before, at the figure approaching 37 million shipments. Apple devices showed greater resilience than top smartphone manufacturer Samsung Electronics, whose output dipped from almost 72 million to about 58 million shipments in the Q1.
US sanctions and investigations further complicate the situation for Huawei Technologies, whose shipments fell by about 10 million units in Q1, totaling approximately 49 million.
Xiaomi Corp reached a record market share of 10%, as both market research groups confirm, and managed to increase its shipments, according to IDC. “Xiaomi is dominating the huge India market at the moment and this is giving the company a big boost in smartphone shipments,” stated Linda Sui of Strategy Analytics.
Up ahead, IDC anticipates consumer demand to stay down throughout the rest of 2020, as the global economy takes a downturn preventing any year-on-year growth until at least the fourth quarter.Source