Phone Shipments to Drop in 2022, Analysts Predict
Another analyst firm has predicted phone shipments will drop this year, with IDC forecasting 3.5% fewer phone shipments in 2022 down to 1.31 billion units. The report, published Wednesday, attributes reduced demand for phones to inflation as well as China’s COVID-19 lockdowns.
The lockdowns are creating a bottleneck for the production of smartphones, in addition to reducing demand in the Chinese market, IDC said.
« The smartphone industry is facing increasing headwinds from many fronts: weakening demand, inflation, continued geo-political tensions and ongoing supply chain constraints. However, the impact of the China lockdowns — which have no clear end in sight — are far greater, » said Nabila Popal, research director at IDC’s Worldwide Mobility and Consumer Device Trackers.
The analyst firm expects there to be a rebound and growth by 2026, however.
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iPhones will be least affected by the shortage, IDC said, due to Apple having « greater control over its supply chain » and because its higher-end phone customers are less affected by inflation.
Strategy Analytics in April predicted smartphone shipments would contract by around 2% due to « geopolitical issues, component shortages, price inflation, exchange rate volatility and COVID disruption, » while TrendForce in May downgraded its smartphone production forecast for a second time, citing rising inflation and the war in Ukraine.
Apple and Samsung didn’t immediately respond to a request for comment.