Due to recent outbreaks of coroavirus (COVID-19), global smartphone shipment is expecting a significant decrease.
According to TechCrunch and Reuters, IDC predicted that the global smartphone market will decrease by 11.9 percent year-on-year in 2020. If this is true, then it would mark as the biggest drop in history.
Already, the global smartphone shipments have decreased by 11.7% in the first quarter. It also recorded he biggest quarterly decline.
IDC expects shipments in the first half of this year to fall more than 18.2 percent from the same period last year following the first quarter of this year. This is also due to the impact of COVID 19. In addition, global smartphone shipments are expected to shift to growth in the first quarter of 2021.
By region, China is showing signs of improvement as supply chain interruptions begin to ease even after the aftermath of COVID 19, IDC said.
On the other hand, countries hit by the COVID 19 crisis such as Italy and Spain predicted a double-digit drop in smartphone shipments this year.
Not only the global smartphone shipment down, Apple is also delaying September launch because of COVID-19
“The worldwide shutdown and rising unemployment have readjusted consumer spending on essential products,” said Srivastava, a senior IDC analyst. “Smartphones have fallen behind essential consumer goods in their consumption priorities.”
“However, smartphone shipments will rebound significantly next year,” he said. “The expansion of 5G communication will serve as a catalyst for the recovery of the smartphone market.”
Apple too is reportedly delaying its September new model launch this year. Apple production cycle was delayed by about a quarter. As CEO of Boradcom, Apple’s chip supplier has stated, quoted by Bloomberg and Reuters.
Previously, Apple has announced that the delay is inevitable even though the company had plans to released iPhone 12 earlier. However, the company predicted only a few weeks delay. Yet the reality said that they have to delay it even longer.