US-based research firm Strategy Analytics has released its new report on the smartphone industry. Accordingly, total revenue from global smartphone sales will decrease by 21 percent in 2020 compared to the previous year due to the coronavirus epidemic.
The new type of coronavirus (COVID-19) epidemic, which is thought to have occurred in a livestock market in Wuhan, China in December 2019, has greatly affected the smartphone industry, just like any other industry. China, which is the production base of many brands such as Apple, Huawei and Xiaomi, closed many factories in the country in order to control the outbreak. Cessation of production had a direct impact on smartphone shipments and sales.
The report titled ‘Global Smartphone Revenues’ published by the US-based research firm Strategy Analytics reveals the gravity of the situation. According to the report, global smartphone revenues in 2020 will decrease by 21 percent compared to last year.
Global smartphone revenues will drop by 21 percent annually in 2020
The company stated in another report on phone sales in February 2020 that global shipments amounted to 61.8 million units, down 38 percent compared to the same period last year. For comparison; This number was 99.2 million in February of last year. However, the coronavirus disrupted the supply-demand balance caused a historical decline in smartphone shipment.
On the other hand, the new report of Strategy Analytics does not draw a pessimistic picture in general. Pointing out that there will be a recovery after 2021, the report predicts that revenues from global smartphone sales will increase by 41 percent in the next 5 years.
Revenues will reach record levels in 2025 thanks to new generation iPhones and 5G smartphones
According to the report, revenues will reach a record high in 2025 and generate approximately 70 percent value share across the premium segment forecast window, thanks to high-priced new generation iPhones and 5G smartphones. Medium-level smartphones will continue to constitute the largest sales share in the market over the next five years. You can reach the full report prepared by Strategy Analytics here.