It looks like the 2020 smartphone market could be down around 15 percent over the previous year, with sales of handsets expected to be significantly lower this year.
This decline is primarily due to the impact of the global pandemic of the coronavirus. All major companies, including Apple, Samsung, Huawei, OnePlus, and many more, are expected to experience lower sales than last year. The pandemic has disrupted supply chains, manufacturing processes, and consumer purchasing power, leading to a notable decrease in smartphone sales.
Impact on Major Brands
Global smartphone shipments are expected to contract by 15% year-over-year to 1.15 billion units in 2020. Major brands such as Samsung Electronics, Huawei, and Apple have all slashed their shipment targets for the year in the wake of the coronavirus pandemic, according to the latest estimate from Digitimes Research. This contraction is significant, considering the smartphone market has been growing steadily over the past decade.
Companies like Apple and Samsung have already adjusted their earnings guidance due to lower-than-expected smartphone sales. Apple, for instance, saw lower demand for their handsets in China, one of their largest markets, and also experienced lower sales worldwide. Similarly, Samsung reported a decline in sales across various regions, attributing it to the pandemic’s impact on consumer spending and economic uncertainty.
Broader Market Trends
The pandemic has not only affected the sales of high-end smartphones but also mid-range and budget devices. Consumers are prioritizing essential spending over luxury items, and smartphones, which were once considered indispensable, are now being seen as items that can be postponed. This shift in consumer behavior is expected to have long-term implications for the smartphone market.
Moreover, the pandemic has accelerated the adoption of digital technologies, leading to an increased demand for devices that support remote work and online education. While this has boosted sales of laptops and tablets, it has not translated into a similar increase in smartphone sales. Many consumers are opting to use their existing smartphones for longer periods, delaying upgrades until the economic situation stabilizes.
Another factor contributing to the decline in smartphone sales is the delay in the rollout of 5G networks. Many consumers were expected to upgrade their devices to take advantage of 5G technology, but the pandemic has slowed down the deployment of these networks. As a result, the anticipated surge in 5G smartphone sales has not materialized.
In addition to these challenges, the smartphone market is also facing increased competition from emerging brands. Companies like Xiaomi, Oppo, and Vivo are gaining market share by offering feature-rich smartphones at competitive prices. This has put pressure on established brands to innovate and offer better value to consumers.
Despite these challenges, there are some positive signs for the smartphone market. The development of new technologies, such as foldable screens and advanced camera systems, is expected to drive future growth. Additionally, as the global economy recovers and consumer confidence returns, smartphone sales are likely to rebound.
The 2020 smartphone market is facing a significant downturn due to the coronavirus pandemic. Major brands like Apple, Samsung, and Huawei are experiencing lower sales, and global smartphone shipments are expected to contract by 15%. However, the market is also seeing new trends and opportunities that could drive future growth. As the world adapts to the new normal, the smartphone industry will need to innovate and evolve to meet changing consumer needs.
Image Credit: ASBYT / YouTube
Latest Geeky Gadgets Deals
Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
