EITHER global smartphone market continues to fall in 2022. According to a new report from market analysis agency Counterpoint Research, sales fell 4% monthly and 10% annually from the market.
More specifically, in May 2022 a new low was registered with a drop of 4% compared to the previous month. In fact, it was the second month in a row that the smartphone market fell this year. On the other hand, the annual drop is even more pronounced.
Inflation, China slowdown and war in Ukraine
The cursed triad will be causing a slowdown similar to that experienced in 2020 as a result of the COVID 19 pandemic. The market analysis agency’s report points to May as the second month of consecutive falls in the market mobile.
Among the factors that have contributed most to this slide is the slowdown in the Chinese economy, as well as global inflation that has affected several markets. In addition, the conflict in Ukraine raised new concerns and particularly affected the European market.
More specifically, in May 2022, the global smartphone sales volume dropped to 96 million units. Also according to Counterpoint, this is the first time since 2020 and the pandemic crisis that the monthly sales volume falls below 100 million units.
The smartphone market is expected to continue falling throughout 2022
Counterpoint analyst forecasts are pessimistic. According to the agency, the global smartphone market will continue to fall through the summer and possibly until the end of the year. In particular, due to the market premium and ultrapremium.
“The demand for a smartphone, particularly in more developed economies, is stimulated by the logic of replacement and upgrade. Therefore, it is a discretionary purchase, that is, not motivated by need. Therefore, considering global inflation and other economic factors, the climate of pessimism leads the consumer to postpone a purchase that is not strictly necessary”, says Tarun Pathak, director of research at Counterpoint.
In value and volume, the ultra-premium segment is increasingly important
Still, Counterpoint believes that in the last months of the year the market can revive. Apple’s new iPhone 14 should contribute to this, in addition to being a stimulus for the Chinese economy. However, the agency also notes that it is in the ultrapremium which concentrates the largest volume of sales of “expensive” smartphones, one of the most important segments of the market.
