96 Million Global Smartphones Sold But Yet To Return To Pre-Pandemic Levels
The global smartphone market hit a new low last month, with sales dipping below the 100 million mark, which is only the second time this has happened in over eight years.
Counterpoint Research’s Market Pulse Service shows sales dropped 4% month-on-month to 96 million units in May 2022. This is reportedly the worst sales performance recorded since COVID-19 emerged in 2020, noting that the market has yet to bounce back and reach pre-pandemic levels. It was also the second consecutive month of month-on-month decline and the 11th consecutive month of a year-on-year dip in sales.
The report attributes the recent decline to a number of factors including inflation, the Russia-Ukraine war and the supply chain issues in China, all of which it believes brought volatility to the market.
Demand is also low, with many consumers deciding to hold onto their smartphones longer and minimising non-essential purchases for the near future. As a result, shipments have been slow and retailers have been cutting orders, which is now causing inventory build-ups.
"The demand for a smartphone especially in the advanced economies is driven by replacement, which makes it a discretionary purchase,” said Tarun Pathak, Research Director. “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," added Pathak.
The problem manufacturers are facing today seems in contrast to last year’s when electronic products were in short supply due to various supply constraints, including chip shortages. While supplies of components have since stabilised, the shortage problems have yet to be fully resolved.
The report further claims that smartphone sales aren’t likely to improve until the second half of 2022. This applies to all manufacturers and brands.
It points out that China’s pandemic lockdowns, among other factors, hurt demand in that region, while the Ukraine crisis hurts Europe.
The global smartphone market hit a new low, with sales dropping 4% month-on-month to 96 million units in May 2022.
The recent decline is attributed to a number of factors including inflation, the Russia-Ukraine war and the supply chain issues in China.
Smartphone sales aren't likely to improve until the second half of 2022. This applies to all manufacturers and brands.
