Global Smartphone Market Saw Its Biggest Slump Ever, New Data Suggests

Market research firm Strategy Analytics published the latest data showing that global smartphone shipments plunged 38% year-on-year in February this year, the biggest decline in the history of the global smartphone industry. Additionally, the drop in sales caused by the new coronavirus outbreak could extend beyond this upcoming quarter.

Strategy Analytics stated that global smartphone shipments fell to 61.8 million units in February, a 38% decrease compared to 99.2 million units in the same period last year.
Linda Sui, Director at Strategy Analytics, said, “Global smartphone shipments tumbled a huge 38 percent annually from 99.2 million units in the month of February 2019, to 61.8 million in February 2020. Smartphone demand collapsed in Asia last month, due to the Covid-19 outbreak, and this dragged down shipments across the world. Some Asian factories were unable to manufacture smartphones, while many consumers were unable or unwilling to visit retail stores and buy new devices.”
Despite initial signs of recovery in China, the global smartphone industry will still feel the impact of the latest coronavirus outbreak, as many Asian factories are unable to manufacture smartphones, plus hundreds of millions of consumers are isolated and reluctant to support retail stores to purchase new smartphones.

Apple too closed all of its physical retail stores outside Greater China and placed purchase limits on new products, suggesting that it is not completely handling ongoing supply issues.

Smartphone sales are expected to fall dramatically in most parts of the world. Not to mention that Apple prefers to keep the original price of its products in its retail stores. iPhone demand is projected to continue to drop in the short term.

The bottom line, according to Strategy Analytics, is that "the smartphone industry will have to work harder than ever to lift sales in the coming weeks, such as online flash sales or generous discounts on bundling with hot products like smartwatches."

Image Via MKBHD

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