CCS Insight: Mobile phone shipments in 2020 will be the lowest in a decade

2020 is going to be tough for phone makers, with analysts at CCS Insight believing that smartphone shipments will fall by 250 million this year compared to 2019. The total number of smartphones this year is expected to be 1.26 billion, the lowest level in a decade.

The impact of the outbreak will be most evident in the second quarter, which will cause a sharp 29% drop in total shipments, but the problem will continue through the end of the year and even affect holiday sales.

Even though most consumers are staying home and stores are closed, demand hasn't completely disappeared. However, companies are dealing with disruptions in the supply chain and are unable to meet demand for some products. Mobile phone sales are expected to be 3% lower this holiday season compared to 2019.

On the positive side, the market is expected to rebound quickly. Pent-up demand this year will boost sales by 12% next year, according to CCS, and the boom will extend into 2022, when shipments will reach nearly 2 billion.

IT Home reports that manufacturers are actively reducing the prices of 5G mobile phones, and it is expected that a total of 210 million 5G mobile phones will be sold in 2020, a tenfold increase from last year. Looking into the near future, most mobile phones sold by 2024 will have 5G connectivity (1.15 billion units)