DigiTimes: Global Smartphone Market Facing 15% Decline in 2020

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The global smartphone market is unlikely to recover from the impact of the global health crisis in the second quarter of 2020, according to DigiTimes.

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Global smartphone shipments are expected to contract by 15% on year to 1.15 billion units in 2020, as major brands including Samsung Electronics, Huawei and Apple all have slashed their shipment targets for the year in the wake of coronavirus pandemic, according to the latest estimate of Digitimes Research.

Apple in mid-February announced that its financial guidance for the March quarter would fall short due to the global health crisis. During its January earnings call, Apple said it expected to see revenue of $63 to $67 billion in the March quarter, but that is no longer a goal the company will be able to meet.

Apple cited lower customer demand in China and constrained ‌‌iPhone‌‌ supplies worldwide as the factors leading to lower than expected revenue.

Apple's primary ‌iPhone‌ assembler Foxconn has also slashed its 2020 revenue outlook after strict quarantines were implemented at its main base in China.

Today's DigiTimes report claims that Apple has cut its iPhone 11 orders for the second and third quarters of the year owing to the impact of the crisis.

Most of the factories in China that supply devices and components to Apple are back to churning out products, but Apple suppliers are said to be worried about how much demand there will be for the current ‌iPhone‌ models and the new iPhones expected in the fall.

Top Rated Comments

NashMan2 Avatar
8 months ago
Why buy a new phone this year when I can’t get closer than 6’ to the friends I would want to impress?
Score: 11 Votes (Like | Disagree)
newdeal Avatar
8 months ago
going to be WAY more than 15%. There is no need for a new phone, the features they are adding aren't compelling enough to make an upgrade that worthwhile and the cost is very high. Phone upgrades are going to tank
Score: 5 Votes (Like | Disagree)
clayj Avatar
8 months ago
Huawei is malware-ridden ChiCom garbage. Why is it counted in this?
Score: 4 Votes (Like | Disagree)
Frign Avatar
8 months ago
Times of hardship can also provide opportunities. It will cleanse the market a bit, reduce competition and maybe allow some new ideas to be brought up instead of the ever-repeating same patterns we have seen for the last 4 years (even though I have to exclude Samsung with their foldable concepts here).
Score: 3 Votes (Like | Disagree)
mazz0 Avatar
8 months ago
Huh, that's actually less than I (with no specific knowledge, of course) expected. I suspect other industries are faring far, far worse?
Score: 2 Votes (Like | Disagree)
Relentless Power Avatar
8 months ago
More than ever, I think it’s the most appropriate time for the iPhone SE 2 added at a $399 price point for those who are Seeking to upgrade, but maybe can’t afford iPhones that start at ~$800 + an above. We all know the ‘tech sector’ for smart phone sales will plunge this year, but most tech in general will probably be on the decline. But in terms of offering an ‘affordable entry-level’ iPhone, it provides consumers that option. A $1000 iPhone is just not practical for the majority of consumers, given the recession and the uncertainty of the future.
Score: 2 Votes (Like | Disagree)

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