Coronavirus Caused An Incredible Shrinkage in the Smartphone Market

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The companies explain the results of the 2020 quarter, which were overcome during the COVID-19 pandemic process. According to the statements, the shrinkage in the smartphone sector seems to have reached very serious figures.

Explaining the results of the first quarter of 2020, companies also show the damage caused by the coronavirus pandemic. The pandemic, which hit the smartphone sector as in many sectors, seemed to have had a hard time for the phone manufacturers. In the first quarter of 2020, which experienced the biggest contraction in the history of the smartphone market, the demand for phones with high prices decreased.

Analyst firms Counterpoint Research and Canalys shared reports on smartphone shipments in the global market. Counterpoint Research announced the general decline in global smartphone shipments as 13 percent, while Canalys reported that the decline reached 18 percent.

Under 300 million for the first time since 2014
When we take a closer look at this situation, the loss of companies is better exposed. More than 300 million smartphones have been sold in every quarter since 2014. It was observed that the market fell below 300 million in the first quarter of 2020 for the first time after a long break. Moreover, this decline has been experienced in China, the largest market in the world. In the statement made by Counterpoint’s analyst team, “As the COVID-19 continued to spread to other regions during the quarter, variable severity disruptions occurred. This glitch has progressed from pendulum supply to demand ”. Manufacturers selling 341 million units of smartphones in the same period of last year were able to sell 295 million smartphones this year.

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Almost all smartphone manufacturers appear to be affected by this epidemic. It was reported that only Xiaomi sold more products among companies that experienced a big decrease compared to the same period of last year. With this success, Xiaomi has become the most smartphone-selling manufacturer after Samsung, Huawei and Apple.

Apart from the success of Xiaomi, Apple also performs better than expected. The company, which experienced a smaller decline compared to other smartphone manufacturers, has had the process relatively well.

There was a shortage of production, then demand.
Canalys senior analyst Ben Stanton said, “When the coronavirus concentrated on China in February, producers were worried about how they would meet production to meet demand, but in March this was reversed. The smartphone production process has now recovered, but sales have fallen because half of the world is in quarantine, “he summarized.

Counterpoint general manager Tarun Pathak said, “Unless the phones are broken, it is an optional purchase for consumers… Consumers will reduce their optional purchases at uncertain times. This will lead to prolonged replacement cycles of smartphones. ”

The effects of the outbreak have not been felt yet
Stressing that the effects of the epidemic have not yet been felt in the smartphone industry, Pathak stated that the real loss of smartphone companies will occur in the second quarter of 2020. Stating that some companies will be in a difficult situation without state support, the analyst said that the size of the companies will be tested in this process.

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