Trendforce: Smartphone market will decline in 2022 due to COVID, inflation

Trendforce: Smartphone market will decline in 2022 due to COVID, inflation

Trendforce published a study currently in which it statements smartphone shipments in the calendar 2022 will drop. General performance in Q1 2022 was unimpressive, and the downward trajectory is predicted to go on in the second quarter as China is battling with its “zero COVID” coverage.

The overall creation forecast for the whole 12 months is 1.333 billion products, which is considerably less than 2021, and Trendforce even warned that there is however place for negative revisions in the upcoming.

Trendforce: Smartphone sales in 2022 will decline due to inflation

One particular of the key factors for the unimpressive sector efficiency, according to Trendforce, is the lockdown getting location in China, which is influencing the economic climate in general, main to much less individuals obtaining new smartphones. The nation is expected to practical experience a sharp 13% decrease in contrast to last yr.

The landscape will remain hard in the next half of 2022. Even if/when China manages to escape its present COVID predicament, the inflation crisis will have an affect on other markets. There is also the Indian market that simply cannot continue to keep sustained development for an extended period.

Trendforce’s point of view of the nationwide shipment share is that China will keep on being the most major current market, but it will shrink from 24.2% to 21.1%, followed by India with 13.1% of all shipments, with the United States coming in 3rd with 11%.