Shipments of smartphones are expected to decline 6.5 per cent in 2022.

The decline, down to 1.27 billion units, is due to “record-breaking inflation, geopolitical tensions, and other macroeconomic challenges that have significantly dampened consumer demand”, according to International Data Corporation’s ‘Worldwide Quarterly Mobile Phone Tracker’ report.

The setup is expected to be short term, with IDC forecasting a rebound of 5.2 per cent growth in 2023.

“The supply constraints pulling down on the market since last year have eased and the industry has shifted to a demand-constrained market,” said Nabila Popal, research director with IDC.

“High inventory in channels and low demand with no signs of immediate recovery has OEMs panicking and cutting their orders drastically for 2022. The events of the last twelve months have shaved 150 million units off the market for 2022 from our forecast in the second quarter of 2021.”

Interestingly, average selling prices have grown by 10 per cent year-on-year, during the June quarter, and are forecast to grow another 6.3 per cent for the full year.