Science & Technology

Smartphone sales nosedived globally due to the pandemic

The prolonged economic uncertainties create weak demand for smartphone sales

smartphone sales

Smartphone sales nosedived globally due to the pandemic. Source: shutterstock.com

GlobalData found that consumer spending in the telecom sector will stay limited indefinitely. Meanwhile, a supply and output slump will lead to delivery backlogs for popular smartphones even as supply chains restart.

In the short term, the financial impact and ripple effect of lockdowns will mute consumer demand for expensive flagship phones and stretch upgrade cycles. Carriers and original equipment manufacturers (OEMs) will have to take strong measures to spur consumer spending on smartphones
Anisha Bhatia, Senior Technology Analyst at GlobalData

The report revealed that China faced a nosedive in smartphone sales in January 2020, although this is now slightly rebounding.

At the same time, the US will likely see a drop in sales as well, since leading mobile operators have temporarily closed many of their retail stores.

Due to the fact that the majority of people in the US and Europe continue to remain on lockdown, the demand for smartphones is likely to remain weak in Q2 2020, the report stated.

We’ve reported that global smartphone production for Q2 2020 will drop by 16.5% to 287 million units, compared to a 10% fall in 2019.

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