COVID, inflation lead to decline in international smartphone market in 2022
The two key factors negatively affecting the smartphone market all over the world this year are COVID and inflation. The 310 million units manufactured in Q1 2022 are a 12.8% drop quarter-on-quarter. The current comeback made by COVID in China is further contributing to the decline in smartphone production by another million, even though the country’s market still holds the top position in the world. Somehow, during the same time frame last year, when the pandemic was particularly rampant in Southeast Asia and India, smartphone production was up by 7%. The 2022 production forecast estimates the number of mobile phones to be produced this year at 1.3 billion units, a decrease from last year.
Demand is also down due to the very same two factors. Inflation is further exacerbated by Russia’s invasion of Ukraine, and China’s lockdown in general, and in production plants in particular. Later on in the year, inflation is expected to grow further, thus aggravating the situation in the smartphone market even more.
The share of China’s mobile phone market is still the largest in the world, even though it has lost 3.1% from 24.2% last year. Shipment estimates are also down to 283 million units, a decline of approximately 13.9%.
The countries with the top three shipment shares in 2022 are expected to be China, India and the USA, with 21.1%, 13.1% and 11%, respectively.Source