Robert Triggs / Android Authority
TL; DR
- For the second time in eight years, smartphone sales are less than 100 million.
- The market peaked in 2016-17.
- Economic downturn, inflation, and the crisis in Ukraine have all contributed to the decline.
Global smartphone sales fell by less than 100 million units for the second time in eight years. According to Counterpoint Research, sales were the worst in 2020.
Smartphone sales closed 96 million units in May 2022, a 4% decrease compared to April and a 10 percent decrease compared to May last year.
What is the cause of this failure? Although the smartphone market is slowly declining due to global chip shortages and supply shortages, it is now facing rising inflation, the slowdown in China, and the crisis in Ukraine.
Is the tip of the smartphone behind us for good?
Remember 2016-2017? Apple released the first iPhone SE, which was a game changer at the time. LG was still working on phones such as the V20 with two displays. Samsung Galaxy Note 7 crashes. Motorola introduces the Moto Z. Well module. It was a time when the smartphone market was booming. A.D. In 2016, global smartphone sales reached a total of 1.5 billion units.
It is fast approaching 2022, and smartphone makers are struggling with construction because people are buying a few phones. This, in turn, will reduce the burden on smartphone manufacturers and reduce order, Counterpoint said.
This looks promising in the second half of 2022, according to a study by Counterpoint.
“In late May, the Chinese government convened a meeting to protest widespread economic stability. The government is expected to implement more aggressive policies to stimulate the economy in the second half. In addition, we believe that Samsung’s new flagship smartphone will drive demand in the premium segment, ”said Liz Lee, Counterpoint Research Senior Analyst.
The research firm expects the smartphone market to decline by 3 percent this year compared to 2021.
“The demand for smartphones, especially in the advanced economies, is driven by the need to replace it,” said Tarun Patak, director of research. And inflation is leading to disappointing consumers around the world by delaying unnecessary purchases, including smartphones.
In short, the industry needs to return to normal, maintain economic recovery, and overcome other stressors such as epidemics and supply shortages.
