Coronavirus causes the biggest drop in the smartphone market – According to The Verge , global demand for smartphones has plummeted with people avoiding purchases due to financial uncertainty throughout and after the coronavirus outbreak (COVID-19).
Counterpoint Research and Canalys estimate the overall drop in global sales at 13%, although Counterpoint says the drop in China was 27%, while Canalys estimates it at 18%.
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“Demand for new devices is low,” says Canalys senior analyst Ben Stanton.
“In February, when the coronavirus was centered in China, suppliers were concerned with meeting global demand.”
“But in March, the situation turned upside down with half the world in confinement, sales plummeted. “
With the crisis, the sale of smartphones should occur only in cases of special needs, such as a broken product.
“From a consumer perspective, unless you replace a broken phone, smartphones are primarily a discretionary purchase,” says Tarun Pathak, associate director at Counterpoint.
“Consumers, in these times of uncertainty, are likely to retain many significant discretionary purchases. This means that replacement cycles are likely to be longer. “
To make matters worse, most smartphone companies expect the second quarter to represent the negative peak of the impact of the coronavirus.
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