This is not the time to buy smartphones. That s what part of the population thought, and sales fell dramatically
This is not the time to buy smartphones . Apparently, a large part of the population thought so, because the sales results of mobile phones in the COVID-19 era look dramatic.
20 percent The sales of smartphones dropped globally in the first quarter of 2020 according to a recent Gartner report .
The report lists the five largest global device suppliers, and collects the rest in a common bag, so we don't have detailed data for all manufacturers. However, looking at TOP 5, it is clear who lost the most in a pandemic.
The sale of smartphones in 2020 flew to the head, to the neck.
The biggest have worried the most. Huawei took the first place in this not very prestigious ranking, for which the global SARS-CoV2 epidemic is just one of the problems. Depriving Huawei smartphones of access to Google services must have had a strong impact on sales. Huawei sold 42.5 million devices in Q1 2020.
Samsung has hit with similar force, although it is still number one in terms of volume and market share, it sold 22.7 percent earlier this year. fewer smartphones.
With TOP 3, Apple lost the least, dropping by just 8.2 percent. Probably a significant role in this relatively small decline was played by the fact that the iPhone 11 is currently the best-selling smartphone in the world, and the iPhone SE, despite the deterioration of many commentators, appealed to the masses.
Xiaomi is the only producer that did not suffer losses in 2020. Relative to the same period last year, the company scored 1.4 percent. sales growth, releasing nearly 28 million devices from factories.
According to Gartner analysts, these are the biggest drops in the history of smartphone sales.
The producers did what they could.
From the perspective of a technology journalist, I'm so full of admiration that the declines were just that. Few industries have been hit by the coronavirus as strongly as the technological one.
Tech industry problems began in November last year before the SARS-CoV2 epidemic became a pandemic . The outbreak of the virus outbreak in Hubei province in China meant huge losses for almost all producers. Factories were closed or their work was partially limited for many weeks. As a result of downtime, prices of components supplied by subcontractors increased.
Then the Wuhan virus spread across the world, which resulted in the closure of all "offline" sales and marketing channels. The electro-markets were closed. Shopping centers were closed where ads could be displayed and posters hung. All fairs and industry events were also canceled, including presentations of new products.
These still take place only in digital form, with a smaller pump, although with the same media involvement.
The number of premieres was a huge surprise in Q1 2020.
Yes, due to the cancellation of MWC 2020, some products (e.g. Xiaomi Mi 10 or Motorola Edge) were presented with a delay of several weeks, but nevertheless they hit the market. When the WHO announced a pandemic, we rather expected that some of the premieres simply will not take place and some of the smartphones, which usually debuted at the beginning of the year, will be released either later or not at all.
Meanwhile, not counting b-brands and less important smartphone manufacturers, there were no major shortcomings. Both top devices and those focused on quantitative sales debuted - from the middle and lower shelves.
The coronavirus did not stop the supply of smartphones. He stopped the demand.
It is hardly surprising that this state of affairs. Apart from the difficult logistics and sale of devices, people in pandemics tend to have other expenses in mind than smartphones. There are reports saying that in the COVID-19 era, sales of luxury goods and high-end goods increased, but more reports indicate that during the pandemic we have limited ourselves to the necessary.
In the United States alone, which is a huge outlet for electronics manufacturers, the unemployment rate in May 2020 reached 14 percent, and experts call the economic crisis overseas the largest since the Great Recession. This situation is not conducive to selling phones.
Will the market learn any lessons from the pandemic?
Maybe an internal idealist speaks in me, but I would love for producers and consumers to draw some conclusions from the pandemic.
In recent months, many people (however this sounds) probably for the first time in years could be convinced that if they do not buy a new smartphone, then the proverbial crown will not fall off their heads.
Although I am also full of admiration for the dynamic activities of the producers, on the other hand ... it's a pity that the pandemic was not a sufficient reason for them to slow down a bit.
Manufacturers are flooding the market every year with a growing wave of devices. Some even shortened product cycles from annual to semi-annual. Some release several variants of the same product on the market, differing so slightly from each other that even an experienced technology journalist has a problem to remember and distinguish them all.
And it would seem that the global slowdown is the best time to rethink business strategies. Unfortunately, there is no indication that any of the producers would draw the conclusion "It's better to launch one phone from each segment, but the highest quality possible, instead of 10 compromises."
And no wonder, because from a business point of view it would be a shot in the foot.
However, looking at the sales results in Q1 2020 one can be tempted to say that the producers have been hit anyway, not only from themselves, but from Covid reality. All that remains is to watch how they will react to this blow in the coming quarters.
This is not the time to buy smartphones. That's what part of the population thought, and sales dropped dramatically
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