We suspected it would be bad — but not inherently bad “lowest point since 2013.” When Apple announced its results busily, Canalys just released some of its own figures — and they’re not good. The global smartphone market has just taken on a major hit after two-quarters of much-needed growth.
And you certainly probably know who the suspect is. The smartphone sector follows many others that have suffered a huge blow as a consequence of the COVID-19 pandemic, with sales down 13 percent last year from this period. Here’s a graph for visual learners between you:
Analyst Ben Stanton used the term “crushed” to characterize the effect on the smartphone sector that the novel coronavirus has. “When the coronavirus focused on China in February, vendors were largely concerned about how to develop enough smartphones to satisfy global demand,” he states.
“But the condition turned onto its back in March. Smartphone production has now stabilized, but profits plunged when half of the country entered lockout.
First it had an effect on the global supply chain, which is based on Asia, as well as a decrease in demand among Chinese consumers. As Europe, the U.S., and other areas tend to stay under shelter orders in effect, competition in such markets has taken a big blow. People are trapped indoors and others have lost jobs — it’s not exactly the best moment for anyone to start paying out $1,000 + on what already feels like a luxury.
Samsung reclaimed the top position, though losing significant amounts. For the year, both it and the business number two, Huawei, were down 17 per cent. Apple fell 8 per cent at number three. Some improvements were seen by Chinese manufacturers Xiaomi and Vivo, at 9% and 3% respectively.
There are always expected to be tough times ahead. Per Stanton, “Most mobile firms anticipate Q2 to mark the peak effect of the coronavirus.” Apple acknowledged its own earnings volatility by opting not to provide estimates for next year.