World smartphone market gross sales declined 4 per cent Month on Month (MoM) and 10 per cent Yr on Yr (YoY) in Might 2022 to 96 million items, the second consecutive month of MoM decline and the eleventh consecutive month of YoY gross sales fall in smartphones, a brand new report stated. In accordance with Counterpoint Analysis’s Market Pulse Service report, even after a “V” formed restoration following the primary COVID-19 wave in 2020, the smartphone market has nonetheless not reached the pre-pandemic ranges, courtesy of inflation, China’s slowdown, and the Ukraine disaster.
In 2021, the smartphone market was impacted by provide constraints and protracted COVID waves. In 2022, the element shortages, though not absolutely resolved, have been stabilising.
“The demand for a smartphone particularly within the superior economies is pushed by substitute, which makes it a discretionary buy. And inflationary pressures are resulting in pessimistic shopper sentiment across the globe with folks suspending non-essential purchases, together with smartphones. The strengthening US greenback can be hurting rising economies. A section of customers is more likely to anticipate seasonal promotions earlier than buying to offset among the price pressures,” Tarun Pathak, Analysis Director, Counterpoint Analysis, stated in a press release.
The low demand can be resulting in stock build-ups resulting in declining shipments and order cuts from smartphone producers. The second quarter is more likely to be essentially the most closely impacted this yr by way of gross sales earlier than the scenario improves in H2.
“China’s lockdowns and extended financial slowdown has been hurting home demand in addition to undermining the worldwide provide chain. The smartphone market in China recovered barely month on month in Might as lockdowns eased, nevertheless, it remained 17 per cent beneath Might 2021. There might should be a brand new baseline market measurement outlined for China’s smartphone market. Added to that is the uncertainty created by the Russia-Ukraine disaster, which is hurting demand in Japanese Europe. Not one of the OEMs appears to be spared from the detrimental influence on demand brought on by a mixture of these elements,” stated Varun Mishra, Senior Analyst, Counterpoint Analysis.