Global smartphone shipments have been dropping this year, and analysts predict that total shipments for 2022 will be lower than in 2021 due to global uncertainties combined with weaker demand. However, according to IDC, Apple with the iPhone will likely be the “least impacted vendor” in this scenario.
According to a report by the analyst firm, smartphone shipments will decline 3.5% to 1.31 billion units in 2022. Previously, IDC had forecast 1.6% growth in the industry for 2022, which is no longer the case.
Experts at the firm explain that there are many reasons why the smartphone market is weaker this year, including inflation and geo-political tensions around the world. However, lockdowns in China caused by the increase in COVID-19 cases certainly has a great impact on the market. As a result of these lockdowns and the global uncertainties, both demand and supply are reduced.
Although all tech companies are being affected by these situations, IDC believes that Apple will be less impacted than its competitors. That’s because Apple has more control over its supply chain, while most consumers in the high-price segment are less affected by inflation and other economic issues.
The largest decline in the smartphone market expected in 2022 is in Europe with shipments down 22%. In China, the market is expected to decline 11.5% by the end of the year, while other regions in Asia are expected to see a slight growth of 3%.
Luckily, IDC expects that the reduction in smartphone shipments is temporary and that the market will return to growth soon. For next year, the analyst firm predicts 5% growth in the smartphone industry. IDC also believes that semiconductor supply issues will ease in the second half of 2022, which will have a positive impact on smartphone shipments.
Read also:
- iPhone made up over half of smartphone shipments in North America during Q1
- Chinese smartphone demand down by a third, but Apple will best weather the storm
FTC: We use income earning auto affiliate links. More.
Comments