INTRO: According to the IDC department, the global smartphone Sales market will definitely decline 11.9% this year in 2020, with shipments getting down to totaling 1.2 billion units. The decline will apparently be largely due to the recession happening due to the current situation of the coronavirus pandemic. According to the report, the market will decline about 18.2% in the first half of the year as the macroeconomic impact of the pandemic continues to affect consumer spending, especially in the smartphone market.
“What was started as a supply-side crisis, now has evolved into a global demand-side problem for all the countries. The Nationwide lockdowns and rising unemployment in all the sectors have reduced consumer confidence and it has reprioritized spending towards essential goods, which is directly impacting the uptake of smartphones in the short term we can say”, as said by the senior IDC research analyst, Sangeetika Srivastava.
She, also said that if we are excluding the confidence that 5G will be a catalyst for growth even as if consumer sentiment remains depressed. “5G is expected to be a catalyst throughout the forecast period for now, which will play quite a vital role in worldwide smartphone market recovery in the year 2021”, she added. The reports further also suggest that the market will recover to grow at around 10% in the next year. But the rate of growth will settle at around 5% in the following years.
The grim report unveils just days after Gartner said that global smartphone sales declined 20.2 percent in the Q1, 2020. According to the report, it says that four out of the top-five smartphone vendors recorded a decline in its sales during this pandemic period. While Samsung, Huawei, Apple, and Oppo all saw reduced sales, Xiaomi was the only company to have bucked the trend during this situation also. Meanwhile, on the other hand worldwide PC sales are also expected to decline 7% this year according to a recent report from Canalys.