IDC predicts that global smartphone shipments will drop sharply this year, reaching only 1.2 billion units

IDC predicts that global smartphone shipments will drop sharply this year, reaching only 1.2 billion units

Due to the impact of the epidemic, global smartphone shipments this year may drop by 12% to only 1.2 billion units.

Recently, market research firm IDC released a report stating that due to the impact of the epidemic on the economy, consumer spending has decreased accordingly, and global smartphone shipments this year may decline sharply to 1.2 billion units, a year-on-year decrease of nearly 12%.

In addition, the decrease in shipments will also have an impact on related supply chains and even disrupt the global supply chain market, ultimately causing a decline in the financial performance of major smartphone manufacturers such as Apple and Samsung, forming a vicious cycle.

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However, as China's economy has restarted and factories have resumed operations, IDC expects the decline in China's smartphone shipments this year to be modest and only in the single digits.

Sangeetika Sriastava, senior research analyst at IDC, said: "Due to the epidemic, the global unemployment rate is rising, and consumer confidence is insufficient. They can only reasonably and prioritize the purchase of daily necessities, and the shipments of products such as smartphones will be greatly reduced."

It can be seen that since the outbreak of the epidemic worldwide, Apple alone has closed multiple offline retail stores and lowered the price of iPhone 11 in China. The launch of the new low-priced iPhone SE model is also considered by some to be one of the company's means to cope with the plummeting global demand for smartphones.

Relevant data statistics show that global smartphone production fell by 10% in the first quarter of 2020. Research firm TrendForce has predicted that global smartphone production in the second quarter of this year will fall by 16.5% year-on-year, setting a record high for the largest decline in history. It can be seen that the situation is indeed not optimistic.

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