Smartphone sales expected to drop 10.6% in 1H20 due to COVID-19

Mohamed Alaa El-Din
3 Min Read

The COVID-19 outbreak will continue to affect the smartphone market throughout the year with expected 10.6% sales decrease in the first half of this year (1H20), according to the International Data Corporation’s (IDC) latest forecast,

The market was supposed to grow this year based on earlier estimates before the virus outbreak. In the long run, the COVID-19 epidemic may eventually cause smartphone sales to fall 2.3% in 2020.

Today, the main problem for smartphone manufacturers are idle supply chains. Especially since Chinese firms have started closing their factories in the past few weeks.

Even though sales of smartphones are expected to show a strong decline in 1H20, the global market is expected to return to normal activity in the third quarter of the year (3Q20).

Looking at Chinese smartphone sales, new estimates see a 40% decrease in January-March compared to last year.

“The lack of components, factory closures, quarantine mandates, and travel restrictions will create barriers for smartphone manufacturers to produce phones and introduce new devices,” IDC said.

“The overall scenario is expected to stabilise from 3Q20. It is hoped that the COVID-19 situation will improve and 5G plans increase the global speed,” IDC added.

Projections indicate that 2021 will herald the return of growth to global smartphone sales.

According to expectations, an annual growth of about 6% would be driven by the demand for 5G mobile phones.

Samsung has closed a smartphone factory in Gumi after a staff member was infected with the Coronavirus. Samsung was manufacturing Galaxy Fold and Galaxy Z Flip mobile devices at this facility.

The factory remained closed until 24 February, while the floor where the infected employee was working was closed until 25 February.

Samsung said in a press release that its employees who were in contact with the patient were quarantined and took steps to examine them for COVID-19.

However, the Gumi plant shutdown is unlikely to have any major impact on Samsung smartphone manufacturing. According to Samsung, the factory represents a small portion of the company’s total smartphone production.

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