New Delhi: COVID-19 pandemic has wreaked havoc on international smartphone market with shipments falling 13 per cent to 272 million models in March 2020 quarter, in accordance with analysis agency Canalys.
A report by Counterpoint Analysis additionally indicated the same state of affairs stating that that is the primary time since March 2014 quarter that the worldwide smartphone shipments have fallen under 300 million models in 1 / 4.
Canalys, in its report, pointed that the smartphone market had entered 2020 in good well being, having simply recorded two consecutive quarters of progress, however demand for brand new units has been “crushed”.
Canalys Senior Analyst Ben Stanton mentioned that in February, when the coronavirus was centered on China, distributors have been primarily involved about the best way to construct sufficient smartphones to fulfill international demand.
“However in March, the state of affairs flipped on its head. Smartphone manufacturing has now recovered, however as half the world entered lockdown, gross sales plummeted. Poor enterprise outcomes, worker redundancies and furloughs are inflicting quite a lot of anxiousness and uncertainty,” he added.
Stanton famous that smartphones are nonetheless a necessity for most individuals, and gadget availability in on-line channels has enabled those that want to exchange a damaged or misplaced cellphone to take action.
However many purchasers who would have purchased a brand new smartphone as a luxurious have delayed that buy, he mentioned.
Canalys mentioned Samsung led the worldwide tally with 21.9 per cent market share in March quarter, adopted by Huawei (18 per cent), Apple (13.6 per cent), Xiaomi (11.1 per cent) and vivo (8.9 per cent).
In line with Counterpoint Analysis, the autumn in first quarter was primarily pushed by a 27 per cent year-on-year cargo decline in China, the preliminary epicentre of the pandemic.
The disruption in China additionally impacted the provision aspect of handsets and elements for some OEMs (authentic tools producers), which in flip, affected international shipments.
In the long term, this might result in OEMs diversifying their provide chain throughout areas, and this might be a silver lining for nations like India and Vietnam, it added.
“Shoppers, below these unsure instances, are more likely to withhold making many vital discretionary purchases. This implies the substitute cycles are more likely to develop into longer,” Tarun Pathak, Affiliate Director at Counterpoint Analysis, mentioned.
“Lockdowns in most components of the world shall be lifted in a staggered approach, which can imply it may take time earlier than the retail exercise fully resumes,” he famous.
He added that customers staying at residence, nevertheless, are partaking on their smartphone greater than ever and this supplies alternatives for companies like cellular gaming and OTT companies.
“This can doubtless result in operators having the ability to upsell to bigger information packages with larger ARPUs,” he famous.
Counterpoint expects the entry-level phase to be hit essentially the most, particularly in rising economies, pushed by influence on individuals’s revenue within the unorganised labour sector and better offline buy tendency.
“The mid phase will proceed to drive volumes. The premium phase is least more likely to be immediately affected by the financial meltdown. Because the shoppers would alter to the brand new regular, the gross sales within the phase are more likely to rebound,” it mentioned.
In line with Counterpoint’s report, Samsung led the worldwide tally with 20 per cent market share in March quarter. Huawei had 17 per cent share, adopted by Apple (14 per cent), Xiaomi (10 per cent), Oppo (Eight per cent) and vivo (7 per cent).
Lenovo Group, realme, LG and Tecno every cornered 2 per cent share within the March quarter, it added.