Slashing its forecast for the global smartphone market by over 3 percent amid the US government’s decision to ban businesses from working with Huawei, market research firm Canalys has said smartphone shipments will reach 1.35 billion units in 2019. This is slightly below 2018’s shipments that touched 1.39 billion. Also Read - The Huawei Mate X2 will have an inward folding screen
“It is important to note that market uncertainty is clearly prompting vendors to accelerate certain strategies to minimize the short and long-term impact in a challenging business environment, for example, shifting manufacturing to different countries to hedge against the risk of tariffs,” Nicole Peng, VP, Mobility, Canalys, said in a statement. Also Read - Huawei set to run out of SoCs soon, smartphone manufacturing will come to a halt
“But with recent US announcements on tariffs on goods from more countries, the industry will be dealing with turmoil for some time.” Moving into 2020, most of the major mobile supply chain and the channel will have active contingency plans to mitigate Huawei’s decline and be ready for 5G device roll out in many markets, the research firm noted. Also Read - The Huawei Mate 40 could debut the Kirin 9000 SoC, likely the brand's last chipset
Looking towards the future, Canalys has predicted positive smartphone growth in 2020 with an expected bounce back to 1.39 billion global shipments, equating to a 3.4 percent increase. Several regions would recover faster than others due to varying lengths of the phones’ life-cycles.