Smartphone Sales Fail to 96 Million Units Globally in May 2022: Counterpoint Research

Smartphone gross sales globally have slipped under the 100-million mark in Might 2022, in accordance with Counterpoint Analysis’s Market Pulse Service. The analysis mentioned that the worldwide market gross sales of smartphones have dropped 4 p.c month-on-month (MoM) and 10 p.c year-on-year (YoY) in Might this yr, marking the second consecutive drop in MoM gross sales and eleventh consecutive decline in YoY gross sales. The report added that the smartphone gross sales are but to succeed in the pre-pandemic mark, occasion after seeing a V-shaped restoration following the COVID-19 pandemic.

In response to a report from Counterpoint Analysis’s Market Pulse Service, the market gross sales of smartphones globally have plummeted to 96 million items in Might 2022. That is mentioned to be a 4 p.c drop in gross sales MoM and a ten p.c drop in gross sales YoY. The report added that this marks the second consecutive decline in MoM gross sales and eleventh consecutive drop in YoY gross sales. It mentioned that, even after a V-shaped restoration from the COVID-19 pandemic, the worldwide smartphone gross sales have nonetheless not reached the pre-pandemic ranges. The smartphone market was hit by supply-chain constraints and chronic COVID-19 waves in 2021. The element shortages are mentioned to be stabilizing this yr.

The report added that in 2022 the smartphone market has been hit by demand scarcity due to rising inflation, China’s financial slowdown, and the Russia-Ukraine battle. The low demand is claimed to be resulting in stock build-ups leading to declining shipments and order cuts from smartphone producers. Within the second quarter, gross sales might be most closely impacted, with the scenario being anticipated to enhance within the second half of 2022.

Varun Mishra, Senior Analyst, speaking concerning the China market and Russia-Ukraine battle, mentioned, “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 p.c under 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 affect on demand attributable to a mixture of these components.”

As per the Counterpoint macro index, the scenario is predicted to get higher within the second half of 2022 because the financial scenario is China normalizes, provide and demand improves within the know-how provide chains, and the macroeconomic panorama improves. In response to the report, June marks the start of interval of promotions in a number of area, like 618 in China and Diwali in India, adopted by Christmas and New 12 months. Samsung Galaxy Z Fold 4 and iPhone 14 sequence launches are probably to assist improve demand of smartphones.

Tarun Pathak, Analysis Director, speaking about Inflation, mentioned, “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 individuals suspending non-essential purchases, together with smartphones. The strengthening US greenback can be hurting rising economies. A phase of customers is prone to anticipate seasonal promotions earlier than buying to offset a number of the price pressures.”

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