The Covid-19 pandemic has hit the world economy in a devastating fashion. Not only are the tech markets, or the service sector suffering, there is not a single sector, spanning right from agriculture to education, which isn’t suffering.
We have been covering stories fervently related to such downfall in sales and services, in every sector.
Today, we’ll speak of decline in sales of one of the most essential commodities of the 21st century: Smartphones.
Smartphone Sales’ Worst Drop since 2013
The impact of COVID-19 on smartphone sales was noted to be drastic. Due to a blockage in shipments around the globe from one country to another, or even within certain countries due to a lockdown situation within a country (for example, in India), the market analysts noted shipments to drop by millions, worldwide in the last few months.
A report from a reliable source revealed that this week has seen the smartphone industry’s biggest decline this week, compared to this past quarter.
Speaking directly of numbers here, as per the report the smartphone shipment numbers have drastically fallen down by 272 million units in Q1 of 2020, down 13% from Q4 2019.
Surprisingly, this number recorded is not only the biggest drop we’ve ever seen in the smartphone market as a whole but also the lowest recorded number since 2013.
Samsung Manages to Top the Chart
Even amidst such heavy downfall and loss recorded in the smartphone sector, mobile maker giant Samsung has reportedly kept its top spot in the industry that too the topmost spot reserved for it.
Samsung’s global market share is holding steady at over 21%.
Even though the company saw smartphone sales drop 17% to 60 million units due to the coronavirus, it still remains the world’s top smartphone brand.
This upward, slightly better trend is closely followed by Huawei. It saw a similar year-over-year drop but surely that drop is not solely the result of coronavirus.
Huawei is then followed by Apple. It saw a considerable dip with a drop of 8%.
Other Vendors are Facing Difficulties to Face up
All the other major manufacturers, apart from the aforementioned 3, shared in a hit to their sales.
The companies that remained flat or showed growth according to the analysts included Xiaomi and Vivo, owing to strong sales in India where some products launched before lockdowns began.
Xiaomi saw a 9% jump from Q1 2019 shipping just over 30 million units.
Vivo saw a 3% jump with a little over 24 million phones shipped.
However, speaking of a whole, taking the bigger picture in view, the smartphone market saw just 272.5 million devices shipped in Q1 of 2020 compared to 313.9 million in Q2 of 2020.
People Not Spending on New Phones
The behaviour of a customer is directly dependent upon the market condition and the societal issues going on.
Due to the Covid-19 pandemic, people have now decided to not invest on new smartphones in these uncertain times.
It has been noted that as 2020 started, the smartphone market was in good health. Around February, though, as the coronavirus spread continued to get worse, demand has dropped.