The reasons for the decline in phone sales in May 2022 – disappointing numbers for global companies

Samsung
alex mathos2 July 2022Last Update : 1 month ago
The reasons for the decline in phone sales in May 2022 – disappointing numbers for global companies

According to Counterpoint Research’s Market Pulse, global phone sales fell to 96 million units in May. The number represents a 4% decrease compared to April and a 10% decrease compared to the May 2021 figures.

It is only the second time in the past 10 years that the number has fallen below 100 million units for the period, and the 96 million figure is the second consecutive monthly decline from annual sales decline.

What are the reasons for the decline in phone sales?

Despite a strong recovery after the initial corona wave in 2020, phone sales have not reached pre-pandemic levels. Ongoing supply chain problems are stabilizing despite rising inflation, slowing factories in China and the Ukraine crisis, which are the main factors limiting demand for phones.

Due to lower demand, phone sellers are suffering from inventory build-up which is expected to show losses in phone shipments data for the second quarter of the year.

Looking ahead, Counterpoint analysts expect the situation to improve in the second half of the year as supply chains return to normal and factories in China are operating at full capacity.

A report earlier revealed phone sales in 2021, which amounted to 448 billion US dollars, as demand increased during that period compared to the previous year, thanks to the increasing demand for devices that support 5G communications.

and reached Phone sales in 2021 About $448 billion which is a 7% increase compared to the 2020 values. The average selling price of phones increased 12% year-over-year and reached $322 thanks to the growing demand for 5G devices. An estimated 40% of all phones shipped in 2021 were 5G capable which is an 18% increase over 2020 values.

phone sales

Apple ranks first in the rankings with total revenue of $196 billion and a 44% share of all revenue in the mobile market. It saw increased demand for the new iPhone 13 series as well as prolonged interest in the previous generation iPhone 12 models. Apple continued its rise in emerging markets such as India, Thailand, Vietnam and Brazil.

Samsung ranks second, with revenues of $72 billion. The figure represents an 11% increase compared to $64 billion for 2020. The mid-tier and flagship segment contributed to the biggest growth for the South Korean tech giant with most units sold of its flagship Galaxy S series and mid-tier Galaxy A and M series.

And Xiaomi is the third leading brand with $37 billion in revenue, up 49% compared to the 2020 values. India was the main market for Xiaomi with the brand reaching new heights in phones priced over ($250) accounting for 14% of its presence. brand in the country.

In your opinion, do you expect the problem to end and the return of phone sales strongly again?

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