Smartphone market in 2022 is expected to decline due to COVID and inflation, according to a recent report by market research firm TrendForce. Global smartphone production volume in Q1 2022 stood at 310 million units – a QoQ decline 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 is still first in the world. It is noteworthy that during the same period in 2021, when the pandemic in India and Southeast Asia caused a decline in total production, cellphone production saw a slight growth of 7 percent. The total production estimate for the whole year currently stands at 1.3 billion devices, which is less than 2021.
Demand for smartphones has declined due to the pandemic prevention measures along with inflation, TrendForce reports. The war between Russia and Ukraine has contributed to rising global inflation. The numbers therefore declined in the first half of the year, mainly due to the impact of China’s collapse on the economy, the market research firm added. The decline in the second half will be due to the inflation crisis. The full production forecast for the full year came down to 1.33 billion units.
China’s smartphone market is still first in terms of overall sales market share, reports the TrendForce. As a result of the pandemic, market share dropped to 21.1 percent from 24.2 percent this year. The total shipping forecast also dropped from 325 million units a year ago to 283 million units, indicating an annual decline of about 12.9 percent. As mentioned earlier, during the same period in 2021, when the pandemic in India and Southeast Asia caused a decline in total production, cell phone production saw a slight growth of 7 percent.
Taking into account the current year’s national delivery share ranking forecast, the top three positions will be occupied by China, India and the United States with a share of 21.1 percent, 13.1 percent and 11 percent, respectively, TrendForce says.