Global Smartphone Sales Fall Below 100 Million Amid China Lockdown

The worldwide smartphone gross sales declined to 96 million items in Could, solely the second time within the final 10 years that it fell under the 100-million mark, a brand new report confirmed on Thursday.

The final time world smartphone gross sales went under the 100 million mark was throughout the first Covid-wave in Could 2020, based on Counterpoint Analysis.

Even after a “V” formed restoration following the primary COVID-19 wave in 2020, the smartphone market has nonetheless not reached the pre-pandemic ranges.

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The worldwide smartphone gross sales declined 4 per cent (month-on-month) and 10 per cent (year-on-year) final month. This was the second consecutive month of MoM decline and the eleventh consecutive month of YoY gross sales decline.

“Inflationary pressures are resulting in pessimistic shopper sentiment across the globe with folks suspending non-essential purchases, together with smartphones. The strengthening US greenback can also be hurting rising economies,” stated Analysis Director Tarun Pathak.

A phase of shoppers is more likely to look ahead to seasonal promotions earlier than buying to offset among the price pressures, he talked about.

In 2022, the part shortages, though not absolutely resolved, have been stabilising.

Nonetheless, the smartphone market is now hit by a requirement hunch attributable to a number of components together with inflation, China’s slowdown and the Ukraine disaster.

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“China’s lockdowns and extended financial slowdown has been hurting home demand in addition to undermining the worldwide provide chain,” stated senior analyst Varun Mishra.

The low demand can also be resulting in stock build-ups, declining shipments and order cuts from smartphone producers.

The second quarter (Q2) is more likely to be probably the most closely impacted this yr by way of gross sales earlier than the scenario improves in H2 2022, the report famous.

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