The COVID-19 pandemic was expected to have minimal effect on the smartphone industry, but as the pandemic continues to devastate countries, forecasts are changing. In this regard, DigiTimes put forward information that refers that shipments of smartphones for distribution should decrease by 15% this year, to 1.15 billion units. A smartphone market at risk.
The smartphone market is increasingly at risk!
The drop in shipping for distribution is expected to hit smartphone brands with a major presence in the United States and Europe, which have implemented strict blocking measures and are likely to experience an economic recession this year. Manufacturers focused on the premium segment are also likely to face extra pressure, as users are starting to live on tighter budgets. In addition, purchasing a new smartphone is usually not at the top of the priority list, especially if it is a top of the range. We recall that OnePlus, which manufactures only premium smartphones, recently laid off some of its workers in Europe.
The technology giant Apple has also reduced its internal goals. DigiTimes reports that Apple may have already downloaded orders for the iPhone 11, which is the best-selling iPhone device worldwide, in the second and third quarters. The newly launched iPhone SE may help to mitigate the short-term impact.
Samsung has also reduced its internal forecasts in terms of shipping smartphones for distribution. At least this year. The poor reception of the Galaxy S20 range is one of the main reasons for this result. If the situation does not improve, it is speculated that this may be the most successful S-range ever. It goes without saying that the revenues of this company will also be affected by these circumstances.
No one really seems to escape the destructive power of COVID-19. Thus, all markets will have to adapt to be able to deal with the new reality that will arrive after the pandemic.
