Tuesday March 31, 2020
Home Lead Story Global Smartp...

Global Smartphone Sales Witnesses 38% Decline Due To Coronavirus Pandemic

It has been the biggest fall ever in the history of the worldwide smartphone market

0
//
Smartphone
It has been the biggest fall ever in the history of the worldwide smartphone market. Pixabay

Global smartphone shipments witnessed a steep decline of 38 per cent Year on Year (YoY) in February 2020 in the wake of the novel coronavirus (COVID-19) outbreak, according to market research firm Strategy Analytics.

It has been the biggest fall ever in the history of the worldwide smartphone market.

According to Linda Sui, Director at Strategy Analytics, “global smartphone shipments tumbled a huge 38 per cent annually from 99.2 million units in the month of February, 2019, to 61.8 million in February, 2020.”

“Smartphone demand collapsed in Asia last month, due to the Covid-19 outbreak, and this dragged down shipments across the world. Some Asian factories were unable to manufacture smartphones, while many consumers were unable or unwilling to visit retail stores and buy new devices,” Sui said in a statement.

A large chunk of of smartphone production happens in China and with the outbreak of the novel coronavirus, manufacturing in the country slowed to a halt in January which disrupted supply chains to many industries around the world, not limited to consumer electronics.

Smartphone
Global smartphone shipments witnessed a steep decline of 38 per cent Year on Year (YoY) in February 2020 in the wake of the novel coronavirus (COVID-19) outbreak, according to market research firm Strategy Analytics. Pixabay

February 2020 saw the biggest fall ever in the history of the worldwide smartphone market. Supply and demand of smartphones plunged in China, slumped across Asia, and slowed in the rest of the world. It is a period the smartphone industry will want to forget,” said Neil Mawston, Executive Director at Strategy Analytics.

The market research firm noted that despite tentative signs of recovery in China, it expects global smartphone shipments overall to remain weak throughout March 2020.

ALSO READ: New “Passport Feature” on Dating App ‘Tinder’ May Let Users Connect With People Globally

“The coronavirus scare has spread to Europe, North America and elsewhere, and hundreds of millions of affluent consumers are in lockdown, unable or unwilling to shop for new devices. The smartphone industry will have to work harder than ever to lift sales in the coming weeks, such as online flash sales or generous discounts on bundling with hot products like smartwatches,” added Yiwen Wu, Senior Analyst at Strategy Analytics. (IANS)

Next Story

Global Smartphone Sales Decline in February Amidst Coronavirus Pandemic (Tech Report)

Sell-in shipments, which represents the supply of smartphones, were relatively weaker, but February is a traditional low period for production, especially if it coincides with the Chinese New Year as was the case this year

0
Smartphone
The global smartphone market is largely a replacement market, meaning that smartphones are a discretionary purchase. Pixabay

Amid the COVID-19 pandemic, market demand is fragile but global smartphone sales in February declined only 14 per cent compared to last year, thus showing some resilience, a new report has said.

From the supply-side, global smartphone shipments (sell-in) fell a slightly more, down 18 per cent compared to last year but again a lower than expected drop, according to Counterpoint Research. As coronavirus spreads like wildfire around the globe, its impact on the technology industry is unprecedented. The global smartphone market is largely a replacement market, meaning that smartphones are a discretionary purchase.

“While people may delay purchasing due to the coronavirus pandemic, especially in the early part of the crisis when the disruption and uncertainty are both high, they will still replace their smartphone at some point. This means that sales will not be entirely lost – just delayed,” Peter Richardson, VP and Research Director, Counterpoint Research, said in a statement.

Please Follow NewsGram on Facebook For All Latest Updates From Around The World!

Sell-in shipments, which represents the supply of smartphones, were relatively weaker, but February is a traditional low period for production, especially if it coincides with the Chinese New Year as was the case this year.

However China, the initial epicenter of the epidemic, did show a huge 38 per cent decline. But it is showing signs of a rebound already. Overall, global smartphone sales in February showed weakness in many markets as consumers became cautious.

But with the growth of online channels, we saw sales shifting from offline to online. Offline sales in China fell more than 50 per cent during February. But this fall was partially offset with stronger online sales, so the overall drop at 38 per cent, was not so severe. “While China and South Korea are gradually recovering, the worst is far from over for many other parts of the world,” said Jene Park, Senior Analyst at Counterpoint.

Smartphone
Amid the COVID-19 pandemic, market demand is fragile but global smartphone sales in February declined only 14 per cent compared to last year, thus showing some resilience, a new report has said. Pixabay

In terms of the competitive landscape, the demand for Samsung smartphones remained stable due to the minimum exposure to the Chinese supply chain and China market demand, thus, capturing 22 per cent global smartphone market share in terms of sales volumes.

Apple felt some impact from the supply-side during the month both in China in early February and outside of China in the latter half of the month, which affected its sales performance.

ALSO READ: Researchers at Kaspersky Uncovers Targeted Campaign To Distribute Malicious Trojan

However, Huawei which has maximum exposure to China from both supply and demand perspectives, actually performed well above expectations, selling more than 12 million smartphones during February, seeing just a 1 per cent drop in global market share. (IANS)