Global smartphone sales fell to 96 million units in May, which is only the second time in the past 10 years that it has fallen below the 100 million mark, a new report showed on Thursday.
According to Counterpoint Research, the last time global smartphone sales fell below the 100 million mark was during the first COVID-wave in May 2020.
Even after a “V” shaped recovery after the first COVID-19 wave in 2020, the smartphone market still hasn’t reached pre-pandemic levels.
Also read: Snapchat Plus Paid Version Is Here: How Much It Costs And What It Offers
Global smartphone sales fell by 4 per cent (month-on-month) and 10 per cent (year-on-year) last month. This was the second consecutive month of decline in MoM and the 11th consecutive month of decline in annual sales.
“Inflationary pressures are giving rise to pessimistic consumer sentiment across the world, with people postponing non-essential purchases, including smartphones. Emerging economies are also hurting by the strengthening of the US dollar,” said Tarun Pathak, director of research.
He added that a section of consumers may wait for seasonal promotions before making purchases to relieve some of the cost pressures.
In 2022, the component shortage, although not completely resolved, is stagnating.
However, the smartphone market is now vulnerable to a drop in demand due to a number of factors including inflation, China’s slowdown and Ukraine Problem.
Also read: Apple’s new M2 MacBook is actually slower than M1 MacBook: Report
“China’s lockdown and prolonged economic slowdown are hurting domestic demand as well as weakening global supply chains,” said senior analyst Varun Mishra.
Low demand is also leading to inventory build-up, dwindling shipments and cutting orders from smartphone makers.
The report said that the second quarter (Q2) is likely to be the most affected in terms of sales this year, before the situation improves in H2 2022.
read all breaking news , today’s fresh news watch top videos And live TV Here.