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| IDC: Corona will reduce phone shipments by 12% in 2020 |
Due to the economic impact of the start of the coronary virus crisis (COVID-19), consumer spending has decreased, so global smart phone shipments will drop nearly 12% to 1.2 billion units in 2020, IDC market research firm said on Wednesday.
The company indicated in the report that the epidemic not only disrupted the commercial supply chain, but also harmed major smart phone manufacturers such as Apple and Samsung, which reported financial losses due to the epidemic, which reduced global consumer consumption. .
(Sanjitika Srivastava) - IDC's chief research analyst said: "The country's shutdown and high unemployment has reduced consumer confidence and lowered priority on commodity spending, directly affecting the use of smartphones in the short term."
The epidemic forced Apple, which had to close retail stores in the United States and Europe after the epidemic, to offer discounts on iPhone 11 in China, and launched a new version of the iPhone SE on the market at low prices in response to the global decline in demand for smartphones.
TrendForce Research announced in April that global smartphone production is expected to decrease in the second quarter of this year by 16.5% year on year. This was followed by a 10% drop in global production in the first quarter of 2020, when the virus spread and peaked in China before invading Europe and the United States.
However, deliveries from Chinese factories to sellers increased in April by 17% year-on-year, indicating that domestic demand in the world's largest smartphone market is showing signs of a rapid recovery.
In China, the economy began to open again and factories started to operate again. IDC expects China's production to drop by one this year. The research company also believes that the provision of 5G networks will help to resume connection of smartphones next year, adding that growth will not resume until the first quarter of 2021.