2022 is tipped to be a year of smartphone decline according to research from the International Data Corporation (IDC), who say that the market has been affected by several issues.
The IDC estimate a 3.5% decline in sales, down to 1.31 billion units. This comes as the last three consecutive quarters have seen smartphone decline.
The IDC has also said that this is likely a result of things such as inflation, weakening demand, stock shortages, political tensions and most significantly, the lockdowns in China.
According to IDC research director Nabila Popal, the lockdowns are having a catastrophic affect on global supply chain by “reducing demand in the largest market globally and tightening the bottleneck to an already challenged supply chain.”
The company says that Chinese branded smartphone sales are the most affected with a 11.5% decline, and Central and Eastern Europe are the most affected regions, with a 22% decline.
Apple are also likely to be one of the least affected, due to their control of their supply chain.
However, 5G devices are thought to counteract the decline. 5G device sales are predicted to see 25.5% year-over-year growth this year and will make up 53% of new shipments.
The IDC has also said that these issues are likely to be short term as the smartphone market begins to normalize post pandemic. They said that the market will receive a 1.9% five-year compound annual growth rate through 2026.
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