Global smartphone market sales decline by 4% to 96 million 2022

The global smartphone market sales declined 4% month-on-month to 96 million units in May 2022, according to Counterpoint Research’s Market Pulse Service.

The research also mentioned the smartphone market has still not reached the pre-pandemic levels due to multiple factors including inflation, China’s slowdown, and the Ukraine crisis. In 2021, the smartphone market was impacted by supply constraints and persistent COVID waves while in 2022, the component shortages, although not fully resolved, have been stabilizing.

“The Global Smartphone Market sales declined 4% Month on Month (MoM) and 10% Year on Year (YoY) in May 2022 to 96 million units. This was the second consecutive month of MoM decline and the 11th consecutive month of YoY sales decline,” reads the report.

The low demand, report noted, is also leading to inventory build-ups leading to declining shipments and order cuts from smartphone manufacturers. It is expected that the second quarter of this fiscal is likely to be the most heavily impacted in terms of sales before the situation improves.

“The demand for a smartphone especially in the advanced economies is driven by replacement, which makes it a discretionary purchase. And inflationary pressures are leading to pessimistic consumer sentiment around the globe with people postponing non-essential purchases, including smartphones. A segment of consumers is likely to wait for seasonal promotions before purchasing to offset some of the cost pressures,” said Tarun Pathak, Research Director.

According to the study, the negativity is likely to continue throughout the summer, and the situation will only improve in the second half of 2022, once the situation normalizes in China. Senior Analyst Varun Mishra said China’s lockdowns and prolonged economic slowdown has been hurting domestic demand as well as undermining the global supply chain.

Also the uncertainty created by the Russia-Ukraine crisis, which is hurting demand in Eastern Europe. None of the OEMs seems to be spared from the negative impact on demand caused by a mix of these factors. The New Indian Express