As things stand, this year is not at all good for smartphone manufacturers.
Smartphone sales are down sharply in 2022 as the market struggles to overcome a number of challenges, according to new research from IDC.
The analyst predicts that delivery of smartphones fall by 3.5% to 1.31 billion units in 2022, after three consecutive quarters of decline and new challenges in supply and demand. However, IDC expects this to be a short-term stalemate and predicts that the smartphone market will recover to achieve a five-year compound annual growth rate (CAGR) of 1.9% by 2026.
What is the biggest cause of the fall?
IDC is to blame for several factors such as weakening demand, inflation, constant geopolitical tensions and constant supply chain constraints.
However, the current rigorous closures in China (for example, until three days ago the city of Shanghai, which has a population of 25 million, has suffered the most severe closures in the world, all because of the so-called “zero rate of Covid-19”). party of China) were singled out as the biggest problem.
Nabila Popal, director of research at IDC, said the blockades are changing “both global demand and supply by reducing demand in the world’s largest market and tightening the bottleneck in an already challenging supply chain.”
IDC says Apple is likely to be the least affected supplier because of greater control over its supply chain and because most of its customers in the high-price segment are less affected by macroeconomic problems such as inflation.
However, changing market conditions will not look the same everywhere. IDC expects the biggest decline in 2022 to be felt in Central and Eastern Europe, with shipments in the region falling by 22%.
China’s smartphone sales are projected to fall 11.5%, or about 38 million units, about 80% of the global drop in shipments this year.
Western Europe is expected to fall by only 1% while most other regions will record growth this year. The Asia-Pacific region (excluding Japan and China) will experience 3% growth according to IDC. Contrary to the trend, 5G devices are expected to be exempt from declining demand. Sales of 5G devices are expected to increase by 25.5% compared to the previous year in 2022 and account for 53% of new shipments with nearly 700 million devices and an average selling price (ASP) of $ 608.
According to the information available and which you could read in the article, it seems that the smartphone market is not expecting bright days later this year. Although manufacturers are trying to show potential customers new devices, which should be attractive to new customers, statistics show that certain regions of the world are still in some trouble. Of course, the situation is not the same everywhere. It remains to be seen whether this situation will improve somewhat at the end of this year and, more importantly, what the beginning of 2023 brings us. The time will show.
|Company||1Q22 Shipment Volumes||1Q22 Market Share||1Q21 Shipment Volumes||1Q21 Market Share||Year-Over-Year Change|
|Source: IDC Worldwide Quarterly Mobile Phone Tracker, April 28, 2022|