Global smartphone sales fell below the 100 million mark in May 2022, according to Counterpoint Research’s Market Pulse Service. The research shows that smartphone sales in the global market fell 4% month-on-month (monthly) and 10% year-on-year (YoY) in May this year, marking the second consecutive decline in sales. number for the month and the 11th consecutive decline. in YoY sales. The report adds that smartphone sales have yet to hit the pre-pandemic milestone, which has seen a V-shaped recovery following the COVID-19 pandemic.
According to a report from Counterpoint Research’s Market Conflict Service, market sales of smartphone globally has plummeted to 96 million units in May 2022. This is believed to be a 4% drop in sales month-on-month and a 10% decline in sales year-over-year. The report adds that this marks the second consecutive decline in revenue month-over-month and the 11th consecutive decline in sales year-over-year. It says that, even after a V-shaped recovery from the COVID-19 pandemic, global smartphone sales have not yet reached pre-pandemic levels. The smartphone market is affected by supply chain constraints and the persistent COVID-19 wave in 2021. Component shortages are expected to stabilize this year.
The report adds that in 2022, the smartphone market has been hit by a lack of demand because of rising inflation, China’s economic slowdown, and the Russo-Ukrainian war. Low demand is believed to be the cause of inventory build-up leading to reduced stock and reduced orders from smartphone manufacturers. In Q2, sales are likely to be hit the hardest, with the situation expected to improve in the second half of 2022.
Varun Mishra, Senior Analyst, speaking on the China market and the Russo-Ukraine war, said, “The Chinese shutdown and prolonged economic downturn have hurt domestic demand as well as disrupted domestic demand. destroy the global supply chain. The smartphone market in China recovered slightly during the month of May as lockdowns eased, however, remains at 17% lower than May 2021. A market size may be required. New base market identified for China’s smartphone market. Add to that the uncertainty created by the Russia-Ukraine crisis, which is weighing on demand in Eastern Europe. None of the OEMs appear to be negatively impacted on demand due to a combination of these factors.”
According to the Counterpoint Macro Index, the situation is expected to get better in the second half of 2022 as China’s economic situation returns to normal, supply and demand improve in the technology supply chain and the macroeconomic backdrop. tissue is improved. According to the report, June marks the beginning of a promotion period in some regions, like 618 in China and Diwali in India, followed by Christmas and New Year. Samsung Galaxy Z Fold 4 and iPhone 14″ Mass launch will likely help increase smartphone demand.
Tarun Pathak, Director of Research, on Inflation, said, “Demand for smartphones especially in advanced economies is driven by substitution, making it a buying option. optional. And inflationary pressures are leading to pessimistic consumer sentiment globally with people delaying non-essential purchases, including smartphones. A stronger US dollar is also hurting emerging economies. A segment of consumers tends to wait for seasonal promotions before making a purchase to offset some of the cost pressures.”
