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The black year of the smartphone market: strong downsizing in 2020 | DigiTimes

That 2020 is the black year of the smartphone market is now certain (and, unfortunately, for the whole world economy). The pandemic in progress is leaving indelible signs: in February shipments fell by 38 percentage points compared to the previous year (99.2 million units) and western countries – especially Europe and the United States – seem to be showing the greatest signs of suffering. where the blockage of activities has been particularly severe. The latest data relating to the Old Continent speak of a 10% drop in the most optimistic scenario, which sinks down to -47.1% in the most pessimistic one.

To underline the difficulties of an entire industry is DigiTimes, which in its latest report predicts for 2020 a 15% slump, with shipments that would therefore stop at 1.15 billion units.

The biggest impact will be the slump in sales of premium smartphones: the less money you have, the less you can buy expensive products. And this is the same reason why Apple seems to have reduced the orders of components for iPhone 11 and related variants, in the hope that the less expensive iPhone SE can (at least in part) offset the losses.

The same goes for Samsung: the Galaxy S20 numbers are not satisfactory – except for the Ultra, whose sales are even above expectations – and the high price will increasingly represent an obstacle for consumers who, due to the crisis in place, they have less purchasing power. And just about the South Korean manufacturer has expressed himself ETNews, which refers to a "drastic reduction in spare parts orders due to the drop in demand due to coronavirus ". Estimates speak of a drop of between 20 and 30%, with peaks reaching 50%: all ranges of smartphones are interested, from the cheapest – Galaxy A – to the most expensive – Galaxy S.

The contraction of Samsung's orders generates negative repercussions along the entire supply chain, from sensors for cameras to display panels, from chips to all other electronic components. This will provoke a worsening of the crisis for all suppliers, a situation which will only further worsen the conditions of an already heavily troubled market.

Credits opening image: Pixabay