Global smartphone shipments to contract in 2022 as China’s Covid-19 lockdowns disrupt manufacturing, logistics
- Total smartphone shipments are expected to reach 1.36 billion units this year, down 3 per cent from 1.39 billion in 2021, according to Counterpoint Research
- It said China’s zero-Covid-19 measures have slowed its economy, causing a global chain reaction amid the country’s closed factories and rising logistics costs
Total smartphone shipments are expected to reach 1.36 billion units this year, down from 1.39 billion in 2021, according to the latest global forecast from Counterpoint Research published on Thursday. In contrast, smartphone shipments last year rose 4 per cent from 2020’s 1.33 billion total.
That assessment reflects continued uncertainty in the smartphone supply chains linked to China even as Beijing moves to ease its rigid Covid-19 control measures.
That reading in May showed that China’s factory activities remain in the worst contraction since February 2020, when the early impact of the Covid-19 pandemic resulted in a PMI of 35.7.
Other factors that will impact smartphone shipment volumes this year include weak consumer sentiment owing to increased global economic uncertainty and surging inflation amid the prolonged war in Ukraine, according to Counterpoint.
Still, the research firm indicated a potential recovery for the global smartphone market in the second half, as economic activity in China picks up.
“We expect smartphone demand to continue to be underwhelming due to weak consumer sentiment and lack of new innovations to stimulate consumers,” Counterpoint research analyst Zhang Mengmeng said in the report.
“The macro-environment will impact all smartphone makers,” Honor chief executive Zhao Ming said on Monday.