The global smartphone market is set to collapse in 2022 due to COVID, inflation: TrendForce

Smartphone market in 2022 is expected to decline due to COVID and inflation, according to a recent report by market research firm TrendForce. The global production volume of smartphones in Q1 2022 stood at 310 million units – a QoQ decrease of 12.8 percent. The return of the pandemic in China in 2022 also contributed to the decline in global mobile phone production to 309 million units. China’s smartphone market still ranks first in the world. It is worth noting that in the same period in 2021, when the pandemic in India and Southeast Asia caused a decline in total production, the production of mobile phones saw a slight growth of 7 percent. The total production forecast for the whole year currently stands at 1.3 billion devices, which is less than 2021.

Demand for smartphones came down due to pandemic prevention measures along with inflation, TrendForce reports. The war between Russia and Ukraine has contributed to the rising global inflation. Thus, numbers fell in the first half of the year largely due to the impact of China’s lockdown on the economy, the market research firm added. The decline in the second half is due to the inflation crisis. The total production forecast for the whole year has come down to 1.33 billion units.

China’s smartphone market still ranks first in terms of overall retail market share, reports the TrendForce. Due to the pandemic, the market share has dropped to 21.1 percent from 24.2 percent this year. The total shipping forecast has also fallen from 325 million units a year ago to 283 million units, indicating an annual decline of about 12.9 percent. As mentioned earlier, in the same period in 2021, when the pandemic in India and Southeast Asia caused a decline in total production, the production of mobile phones saw a slight growth of 7 percent.

Taking into account the forecast for ranking of national shipping share of the current year, the top three positions will be held by China, India and the United States with a share of 21.1 percent, 13.1 percent and 11 percent, respectively, says TrendForce.