Sales on the global smartphone market are still declining. A report states that in May 2022, sales decreased by 10% year over year and 4% month over month. Sales decreased for the second consecutive month MoM and for the eleventh month in a row YoY in May. Numerous factors contribute to the decline, but inflation, China's slowdown, and the Ukraine crisis are thought to be the main offenders.
In May 2022, the number of smartphones shipped globally fell to 96 million units, according to the most recent report by market research company Counterpoint. Since the pandemic hit 2020's first and second quarters, monthly smartphone sales haven't fallen below 100 million.
Inflation, China's slowdown, and the Ukraine crisis are just a few of the factors contributing to the ongoing decline. Consumers are staying on their phones and refraining from pointless purchases as a result of inflation.
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"Replacement is the primary driver of smartphone demand, particularly in advanced economies, making it a discretionary purchase. Inflationary pressures are also causing consumers to feel pessimistic and put off buying non-essentials like smartphones, according to research director Tarun Pathak. "Emerging economies are also being harmed by the strengthening US dollar. To alleviate some of the cost pressures, some consumers might wait for seasonal sales before making a purchase, Pathak continued.
The lockdown in China and the crisis in the Ukraine are both having a significant impact on the smartphone market. The lockdown in China has hampered the global supply chain and hurt domestic demand. According to the report, the demand has decreased in Eastern Europe as a result of the Ukraine war.
The Counterpoint macro index predicts that the Global smartphone will likely continue to lose money all summer long. But during H2, the market is anticipated to recover, largely as a result of improved conditions in China and a better supply-demand balance in the tech supply chain.
