Smartphones Manufacturing Recovered But Sales Declined
Smartphone market suffered the worst in history due to the Coronavirus pandemic. This is a very fast decline compared to last year according to data from an analyst firm. Counterpoint Research and Canalys mentioned that drop in overall shipment at 13%, Counterpoint says the drop in china was 27% while Canalys says drop in china alone was 18%.
No matter whatever number you check but the situation is very much clear and after 2014 it is the first time shipments come under 300 million due to falling demand across the globe. “By the end of quarter, as Covid-19 started to spread throughout different region and severe lockdowns were imposed which made disruption from supply to demand” Written by CounterPoint’s Analysts Team
Top three vendors are Samsung, Huawei and Apple but small declines for shipments in Apple. Both Counterpoint and Canalys had given fourth rank to Xiaomi and cracked 10% of global market share for the first time.
There has been a crushing demand for new devices, Says Canalys Sr.Analyst Ben Stanton. In February when the coronavirus pandemic in China, Most of the vendors were concerned about how to make enough smartphone devices to meet worldwide demand but in march the situation changed. Now there is recovery in smartphones manufacturing but half of the world entered into lockdown and sales declined.
Counterpoint associate director Tarun Pathak Said that If we think from a consumer perspective then replacing a broken phone is mostly a discretionary purchase. Due to the current situation consumers may hold their discretionary purchase and that will affect the replacement cycle and it will become longer.
The true impact of Covid-19 is not yet to be felt as most of the smartphone companies expect Q2 affects more and it will be picked for coronavirus impact. It will test the tenacity of the industry and some companies and mostly offline retailers will suffer a lot and it will fail without government support.