Global smartphone sales declines 100 million units in May: Report

The Globe is suffering from the COVID pandemic for the past two consecutive years and this heavy decline in smartphone market value and technology year on year. As per the recent counterpoint report, the global smartphone market sales declines 4 percent month on month.

This monthly decline in smartphone sales highly drops the market value. Even after a ‘V’-shaped recovery in the year 2020, the market is not up like pre-pandemic. Meanwhile, as per the recent counterpoint report, the global smartphone market sales decline by 4 percent every month.

On the other hand, while talking about the yearly declination the global smartphone market sale dropped by 10 percent year on year in May 2022 to 96 million units. This is a decrease from the for 2 consecutive past months and a decrease from the same period of the previous year for 11 consecutive months.

Reason for the downfall of Global smartphone market sales in May 2022:

In particular, the corona crisis has not been resolved at an extension but the smartphone market is still suffering from a slowdown in demand due to various factors such as inflation.

Additionally, the negative outlook continues during the summer, but mainly with the normalization of China, the continuous improvement of the supply-demand balance of the technology supply chain, and the improved macro-economy with mid-peak inflation.

Due to the environment, it is expected to improve gradually market value in the second half of the year, the time before going down again. The upcoming month can be marked as the promotional period of the smartphone market region-wise. Like,

• 618 in China
• August, Diwali in India
• Christmas and New Year

The Director Tarun Pathak stated that:

The demand for a smartphone especially in the advanced economies is driven by replacement, which makes it a discretionary purchase. And inflationary pressures are leading to pessimistic consumer sentiment around the globe with people postponing non-essential purchases, including smartphones. The strengthening US dollar is also hurting emerging economies. A segment of consumers is likely to wait for seasonal promotions before purchasing to offset some of the cost pressures

(Source: Counterpoint)