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Smartphone market suffers the largest ever fall in history

Smartphone market suffers the largest ever fall in history - Appy Pie

Smartphone shipments have declined in the first quarter of 2020 by 11.75% year-on-year as per International Data Corporation and Strategy Analytics.

The decline comes as Q1 2020 marked the beginning of COVID-19 pandemic and lockdowns in China, which further extended to the rest of the world by the end of the quarter. China saw the largest shipments drop 20.3% year over year. Other regions like the US and Western Europe became part of the decline by falling 16.1% and 18.3% respectively.

Major economies around the world are in a complete lockdown causing consumer demand to fall flat. Lockdowns and closures of retail shops across globally, strongly hit the market. During the unforeseen situation, consumers have become cautious about their spending leading to smartphone purchases suffer.

Samsung, Huawei, and Apple the top three vendors in the market also saw the change. Samsung saw an 18.9% year-over-year decline and Huawei and Apple saw 17.1% year over year and 0.4% year over year simultaneously.

Industry specialists are of the viewpoint that the situation on the ground level is bad, as the supply for smartphones predominantly comes from China. Also at the same time, the market is slow and demand is sluggish over the fact that a smartphone is not a priority and other aspects and needs are taking over. As per experts, the smartphone market is heading for a worst-ever snag.

Most leading handset manufacturers said that they have not estimates the final impact on their business. Some manufacturers foresee and anticipate recovery after July 2020.

The coronavirus outbreak and its perceived risk on the smartphone market are likely to grow and the market may remain flat if the pandemic is not brought into control.

Market analysts – International Data Corporation and Strategy Analytics foresee some growth during the second half of the year if the situation begins to normalize from the end of May.