The COVID-19 pandemic was expected to have minimal effect on the smartphone industry but as the pandemic continues to ravage countries unabated, predictions are changing. Research firm DigiTimes has published a report which projects that smartphone shipments are now expected to decrease by a massive 15% this year to 1.15 billion units.
The slump in shipment is expected to hit smartphone brands with large presences in the United States and Europe, which have implemented strict lockdown measures and are likely to experience an economic recession this year. Manufacturers focused on the premium segment are also expected to face extra pressures since buyers are starting to live on tighter budgets. Besides, getting a new smartphone isn’t typically high on the list of priorities, especially not high-end ones. Recall that OnePlus which manufactures only premium phones recently laid off some of its workers in Europe.
Tech giant Apple has already lowered its internal targets. DigiTimes reports that Apple may have already lowered orders for the iPhone 11, which is the best-selling iPhone device globally, for the second and third quarters. The newly released iPhone SE may help soften the near-term impact.
Samsung has also reportedly lowered its internal smartphone shipment forecasts for the year. The poor reception of the Galaxy S20 series is one of the main reasons for this outcome. If the situation doesn’t improve, there are speculations the series could become the worst-selling Galaxy S lineup in years or perhaps ever. The company’s revenue will also take a hit under this circumstance.
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