Wired
In the smartphone market in May 2022, unit sales fell 10% year-on-year to less than 100 million units.
Smartphone sales have fallen below the same month last year for 11 consecutive months, and demand continues to be sluggish due to multiple factors such as inflation, China and Ukraine.
Slumping global smartphone market
According to research firm Counterpoint, global smartphone sales in May 2022 were 96 million units, down 4% month-on-month and 10% year-on-year.
Smartphone sales have been declining for 11 consecutive months compared to the same month of the previous year, and have continued to be sluggish.
The number of smartphones sold has recovered in a V-shape after a large decrease due to the epidemic of the new coronavirus in 2020, but it has not yet returned to the level before the epidemic of the new coronavirus.
Inflation, China’s economic slowdown, Ukraine crisis, etc. are the factors behind the downturn
Regarding the slump in the smartphone market, Counterpoint says that the shortage of parts that had been the cause so far has not been completely resolved, but it has remained stable.
The current slump is due to multiple factors, including inflation, the slowdown in China, and the crisis in Ukraine.
Inflation has led to unnecessarily postponed shopping, and replacement demand, which accounts for the majority of smartphone sales in developed countries, is sluggish.
Another reason for the sluggish sales is that the strong dollar is hitting emerging economies.
China’s lockdown and prolonged economic slowdown not only hit demand in China, but are also affecting the global supply chain.
In addition, the crisis in Ukraine has slumped demand for smartphones in Eastern Europe.
All smartphone makers are said to have a negative impact on demand due to these factors.
Will the situation improve in the second half of 2022?
Regarding the outlook, Counterpoint believes that the macroeconomic condition will improve if the situation in China becomes more normal, the supply-demand balance in the supply chain improves further, inflation peaks in the middle of the year and prices start to decline. I am.
For this reason, although the negative situation will continue during the summer, the situation will gradually improve in the second half of 2022.
In addition, the launch of Apple’s iPhone 14 series and Samsung’s Galaxy Fold series scheduled for the second half of 2022 may lead to demand stimulation.
Source: Counterpoint
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(Hauser)
Source: iPhone Mania