Smartphone shipments have dropped

Counterpoint analysts spoke about the situation in the global smartphone market. This is reported in a report on the company’s website.

Global smartphone shipments fell below 100 million units in May, the firm said, for the second time in 10 years. Shipments fell to 96 million units, down 4 percent m/m and 10 percent year on year.

This situation on the market is due to a shortage of components, rising inflation, a slowdown in production growth in China and the Ukrainian crisis. Analysts noted that the smartphone market still has not reached pre-pandemic levels. In 2021, it was affected by supply restrictions and coronavirus restrictions.

“Inflationary pressures are leading to pessimistic consumer sentiment around the world as people put off non-essential purchases, including smartphones,” said Tarun Pathak, director of research at Counterpoint. According to the specialist, the strengthening of the US dollar also hurts emerging economies. “The lockdown in China and the prolonged economic downturn are hurting domestic demand as well as disrupting the global supply chain,” said Varun Mishra, senior analyst at the firm.

According to experts, the decline in the smartphone market will continue throughout the summer, but the situation will stabilize in the second half of the year. This is associated with the normalization of production in Asia and the establishment of new supply chains.

At the end of April, Counterpoint analysts noted that the popularity of refurbished smartphones has grown in the global market. According to the company, in 2021, shipments and sales of refurbished devices increased by 15 percent.