Global smartphone market has fallen sharply due to Coronavirus

Global smartphone market has fallen sharply due to Coronavirus

Global smartphone market has fallen sharply due to Coronavirus

The financial results for Apple’s second fiscal quarter revealed a drop in revenue from iPhones, but it wasn’t just the Cupertino giant that suffered from reduced sales: the global smartphone market suffered one of the biggest declines due to the new pandemic Coronavirus (COVID-19), according to researches.

The 6.8% reduction in iPhones revenue placed Apple below the average drop in worldwide sales, according to some of the leading research firms – that is, although the results were poor, Apple performed reasonably on the global stage .

See below how some companies have analyzed the market drop:

Although there is a tendency for the market to decline in the first quarter of the year, when comparing the period from January to March 2020 with the numbers of previous years, the results showed one of the biggest falls ever seen (with sales below 300 million units) .

What started out as a supply-side problem, initially limited to China, has turned into a global economic crisis, with the impact on the demand side starting to appear at the end of the quarter.

It is practically unanimous among the firms that the negative results are a reflection of the supply restrictions caused by the interruption of the production chain in China, associated with the reduction in demand and the uncertainty of the financial market in several countries – all of this triggered, of course, by the pandemic.

The surveys of the aforementioned firms also agreed on the market share of each manufacturer, with the Samsung ranked first in all of them, followed by Huawei and, finally, by Apple. When examining the numbers from a regional perspective, China experienced the biggest decline in sales, with a drop of more than 20%.

Finally, it is difficult to predict how the market will react to the consequences of the pandemic in the coming quarters. In many cases, as regional and global economic uncertainties remain, manufacturers are reconsidering their prospects for 2020 – like Apple itself.

via AppleInsider