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Smartphone shipments in 2020 to be the lowest in 10 years: CCS Insights

Smartphone sales will be affected by disruptions in manufacturing and logistics, among many other factors this year. The effects of this are expected to go on until the end of the year.

  • Published: April 3, 2020 3:50 PM IST
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2020 has been a hard year for many industries with most of the world coming to a near standstill due to the Coronavirus pandemic. However, it will be the smartphone sector which will be one of the most hard-hit segments in technology. A CCS Insight report reveals that it will be a hard year for phone makers. The expected total number of smartphone sales this year is 1.26 billion. That’s a whopping 250 million units lesser than last year. Moreover, its the lowest number in the last decade. Also Read - IIT's are helping India to fight against Coronavirus Outbreak

The effects of the COVID-19 outbreak will hit brands hardest in Q2 2020, which is expected to see a 29 percent drop in combined shipments. Moreover, other issues that tie in with other affected sectors like logistics and manpower will continue to see effects until the end of the year. Even the holiday sales this year will be affected, claims the report. Also Read - Google gives $6.5 million to help fight Coronavirus misinformation

Watch: 5 Tips to Save Mobile Data

Most customers across the globe are currently staying at home. However, demand has not completely died out. That being said, almost all companies are dealing with big disruptions in the supply chain. Hence, customers across many countries are not able to buy new smartphones as of now. Moreover, in countries in lockdown like India, people who have already bought and paid for their smartphones are also left on hold. Also Read - Oura smart ring could help people detect early symptoms of Coronavirus

Another factor that will prevent customers from buying new phones is the financial uncertainties that will follow for a while, even after the pandemic subsides. People will be less keen on buying items that aren’t absolute necessities, including phones. The report suggests that the holiday season will see 3 percent fewer smartphones sold compared to 2019.

Why smartphone sales will also bounce back quickly

The good part is that the market is expected to bounce back quickly. The unmet demand from this year is expected to bump sale numbers by 12 percent next year. This will go on till 2022 when shipment numbers are expected to cross 2 billion units. Moreover, smartphone manufacturers are also looking at making phones cheaper. We can expect much more powerful 5G mid-range and flagship phones to become more affordable. The report also adds that by the year 2024, most phones sold will be 5G enabled.

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  • Published Date: April 3, 2020 3:50 PM IST



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