38% drop in Smartphone Deliveries
In a difficult context linked to the corona virus epidemic, the Strategy Analytics report announces a 38% drop in global smartphone shipments in February 2020, i.e. only 61.8 million smartphones delivered compared to 99.2 million in February 2019.
The report specifically mentions the collapse in demand in Asia last month due to containment measures.
Some Asian factories have been unable to make smartphones, while many consumers have been unable or unwilling to go directly to the store to buy new devices.
A decline in sales that will inevitably continue in March
In March, the decline in smartphone sales should continue. In this quarantine period, when more than 1 billion people worldwide are now subject to containment restrictions, buying a smartphone does not seem to be a priority.
Despite the resumption of activity in China, the month of March seems to be similar to that of February because the countries affected by the epidemic have not announced an exit from containment, and other countries which are not yet confined could follow soon. This particular context also leads some people to be reluctant to buy, as pointed out by Yiwen Wu, analyst at Strategy Analytics.
Fear of the coronavirus has spread in Europe, North America and elsewhere, and hundreds of millions of consumers are stuck, unable or unwilling to buy new devices
Smartphone manufacturers Apple and Samsung are adapting
Apple has just re-opened its 42 stores in China but has announced the closure of all of its other Apple Stores worldwide until March 27.
Samsung, the world leader in smartphones has also been forced to repeatedly suspend its operations in its factory 200 km from Seoul, due to cases of coronavirus detected in its employees.
The smartphone industry will have to adapt to the context of the crisis to continue producing and to restart sales in the weeks to come.