The prolonged economic uncertainties create weak demand for smartphone sales
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.
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.