Global smartphone shipments plunged 38 per cent year-on-year in February, the biggest drop in the history of the global smartphone market, according to the latest data released by market analyst Strategy Analytics,media reported. In addition, the sales downturn caused by the new coronavirus outbreak is likely to continue.
(Photo via Apple Insider)
Global smartphone shipments fell to 61.8 million units in February, down 38 percent from 99.2 million a year earlier, according to the latest global smartphone shipments released by Strategy Analytics.
Analysts at Strategy Analytics said that despite the initial signs of recovery in China, the global smartphone industry will continue to feel the effects of the new coronavirus outbreak because “many Asian factories are unable to produce smartphones and hundreds of millions of wealthy customers are isolated and unable or unwilling to visit retail stores to buy new equipment”.
Steve Mollenkopf, Qualcomm’s chief executive, has previously said smartphone sales in China are normalizing. Earlier this month, Foxconn said it was returning to full production at a “faster-than-expected” pace.
But the rest of the world is still struggling to cope with a worsening outbreak, including markets and regions that are as critical to Apple and other companies as China. In March, Apple closed all of its brick-and-mortar retail stores outside Greater China, imposing restrictions on new devices, a sign that it is still fully dealing with lingering supply problems.
Smartphone sales in most parts of the world are still likely to fall sharply. “In the coming weeks, the smartphone industry will have to work harder than ever to boost sales, such as launching online promotions or discounting with popular products such as smartwatches,” said Analysts at Strategy Analytics. “
Of course, Apple prefers to keep the product at its own retail store. This is likely to be reflected in analysts’ forecasts that demand for the iPhone is likely to continue to decline in the short term.
Neil Mawston, executive director of Strategy Analytics, said: “In February 2020, the global smartphone market experienced its biggest ever decline. China’s smartphone supply and demand have fallen sharply, across Asia and the rest of the world has slowed. This is a time the smartphone industry wants to forget. Looking ahead, the industry doesn’t seem to be out of the woods yet. “