COVID-19 Causes Worst Smartphone Market Contraction In History

0
60

The coronavirus pandemic has caused the smartphone market to suffer its fastest ever first-quarter year-on-year decline, according to new data from analyst firms. Counterpoint Research and Canalys both put the overall drop in global shipments at 13 percent, though Counterpoint says the drop in China alone was 27 percent while Canalys calculates it at 18 percent.

SmartPhones

Whichever numbers you look at, the situation is clear: it’s the first time shipments have come under 300 million since 2014, with a precipitous collapse in China preceding falling demand around the world. “By the end of the quarter, as COVID-19 started to spread to other regions, and lockdowns of varying severity were imposed, the pendulum of disruption started to swing from supply to demand,” Counterpoint’s team of analysts writes in a statement.

Highlights:

  • The demand for new devices has been crushed due to COVID-19.
  • Samsung, Huawei, and Apple remain the top three providers.

Q4 Results

Samsung, Huawei, and Apple are still the top three vendors, with Apple seeing the smallest decline in shipments year on year. Both Canalys and Counterpoint rank Xiaomi fourth, cracking 10 percent of global market share for the first time.

“By the end of the quarter, as Covid-19 started to spread to other regions, and lockdowns of varying severity were imposed, the pendulum of disruption started to swing from supply to demand,” Counterpoint’s team of analysts writes in a statement.

“Demand for new devices has been crushed,” says Canalys senior analyst Ben Stanton.”Regardless of the numbers you look at, the situation is clear: It is the first time shipments have reached less than 300 million since 2014, with a precipitous collapse in China preceding the drop in demand worldwide. “At the end of the quarter, when COVID-19 began to spread to other regions, and blockages of varying severity were imposed, the disruption pendulum began to swing from supply to demand,” Counterpoint’s team of analysts writes in a statement.

Samsung, Huawei, and Apple remain the top three providers, with Apple seeing the smallest drop in shipments year-over-year. Both Canalys and Counterpoint rank Xiaomi in fourth place, breaking 10 percent of the global market share for the first time.

The true impact of the pandemic has yet to be felt. “Most smartphone companies expect Q2 to represent the peak of the coronavirus impact,” says Stanton. “It will test the mettle of the industry, and some companies, especially offline retailers, will fail without government support.”