Global smartphone market to face decline in 2022 due to COVID, inflation: TrendForce

According to a recent report by market research firm Trendforce, the smartphone market is expected to decline in 2022 due to COVID and inflation. Global smartphone production volume stood at 310 million units in the first quarter of 2022 – a 12.8 percent decrease in QoQ. The return of the pandemic to China in 2022 also contributed to a 309 million unit drop in global mobile phone production. China’s smartphone market still ranks first in the world. It is worth noting that during the same period in 2021, when India and South East Asia saw a decline in overall production due to the pandemic, the production of mobile phones saw a marginal increase of 7 per cent. Total production for the full year is currently estimated at 1.3 billion devices, down from 2021.

Smartphone demand slowed down due to inflation as well as pandemic prevention measures, TrendForce reports, The war between Russia and Ukraine has contributed to rising global inflation. Thus, the numbers have come down in the first half of the year due to the impact of China’s lockdown on the economy, the market research firm said. The fall in the second half will be on account of the inflationary crisis. The overall production forecast for the full year has come down to 1.33 billion units.

The Trendforce report claims that the China smartphone market still ranks first in terms of overall sales market share. Due to the pandemic, the market share has come down from 24.2 per cent this year to 21.1 per cent. The overall shipment forecast also declined to 283 million units from 325 million units a year ago, indicating an annual decline of about 12.9 percent. As mentioned earlier, during the same time period in 2021, when overall production declined due to the pandemic in India and Southeast Asia, the production of mobile phones saw a marginal increase of 7 per cent.

Taking into account the current year’s national shipment share ranking forecast, Trendforce says the top three positions will be China, India and the United States with a share of 21.1 per cent, 13.1 per cent and 11 per cent, respectively.

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