The International Data Corporation (IDC) has forecasted that in 2020 there will be a decline of 2.3% in the global smartphone market. In the first half of 2020, smartphone sales are expected to fall 10.6% year-on-year. The huge shortage of components, factory shutdowns, quarantine mandates, logistics, and travel restrictions is going to be the biggest reason that will create difficulty for smartphone companies to manufacture the mobile handsets as well as its shipment. The global smartphone market recovery will be impacted in 2020 as uncertainties around COVID-19 increased over the last month.” The report further explained, “The worldwide smartphone market is expected to decline 2.3% in 2020 with shipment volume just over 1.3 billion. The COVID-19 outbreak is expected to stress the short-term scenario with shipments declining 10.6% year over year in the first half of 2020. Global smartphone shipments are expected to return to growth in 2021 driven by accelerated 5G efforts.” The present scenario has given the largest smartphone market in China the biggest hit. The situation is going to start getting better from the third quarter of the year when the COVID-19 situation that is also referred to as coronavirus improves and the 5G plans pick up the pace globally. February and March is usually the time when most of the smartphone companies introduce their flagship products. According to Will Wong, research manager with IDC’s Asia/Pacific Client Devices Group, “For the epicenter, China, we forecast the domestic market to drop by nearly 40% year over year for the first quarter and even with a potential March recovery it will still be difficult to reach last year’s levels.” Furthermore, he says, “Buyers will purchase from online channels, which will account for a significantly increased share of phones sold in the first half of 2020 and may represent a permanent shift in buying behaviors.” This means the pandemic is likely to cripple the Chinese economy. Unfortunately, this will put the burden on the SMEs and we are going to see an increase in the pricing of devices. For the latest gadget and tech news, and gadget reviews, follow us on Twitter, Facebook and Instagram. For newest tech & gadget videos subscribe to our YouTube Channel. You can also stay up to date with the Gadget Bridge Android App.
