Bring out your touch-tone! The supply of the smartphones in the world collapsed to unprecedented levels
The largest drop of shipments was recorded by smartphone manufacturers in the first quarter. Shipments of mobile phones of all brands fell by 11.7% - this is a record for the market that has been continuously growing.
Samsung suffered the most, with shipments down almost 20% to 58.3 million smartphones, and the brand’s market share fell from 23% to 21.1%. Deliveries of Huawei smartphones decreased by 17.1%, the company's market share fell from 18.9% to 17.8%. Deliveries of equipment of Vivo and Xiaomi brands increased by 7% and 6.1%, respectively. Apple also showed a slight drop, which during the crisis managed to sell 36.7 million iPhones and increase its market share from 11.8% to 13.3%. The corporation has already announced that it plans to postpone the start of production of four new models that they wanted to introduce in September this year. The company was supposed to present new models from the iPhone12 series, two of them with 6.1-inch screens, one from 5.4-inch screens and one 6.7-inch. Start of production was postponed for a month due to the closure of Asian production during the pandemic. In addition, one of the company’s contractors was reprofiling its activities to produce more popular mechanical ventilation devices.
A total of 275.8 million smartphones were shipped in the first quarter. The decrease in shipments in the first quarter was not a surprise for global brands. Most of the phones are assembled in China, the factories in which has been suspended since the beginning of the year. The restriction of exports from China led to a decrease in shipments in other countries of the world. In the most celestial supply fell by more than 20%, previously the country accounted for a quarter of world supplies. Smartphone shipments in the US fell by 16.1%, in Europe - by 18.3%. “The problem with deliveries in China has ceased to be only the problem of this country. It resulted in a global economic crisis and had a significant impact on demand by the end of the first quarter. When the supply chain began to recover in China, a significant drop in demand for electronics continued in other countries of the world. In these uncertain times, people are more selective in their spending, ”reads a study by International Data Corporation.