Mobile phone sales won’t return to pre-pandemic levels until 2022, but pent-up demand, a broader macroeconomic recovery, and the wider availability of 5G networks and handsets are all expected to drive the market recovery. figures analysts have mentioned.
The smartphone sector has been affected by Covid-19 due to economic and production difficulties which have caused supply problems and reduced demand. However, the easing of lockdown measures around the world has laid the groundwork for a recovery.
CCS Insight forecasts mobile phone sales to reach 1.67 billion this year, up 6% year-over-year, but still 8% lower than in 2019. However, the outlook is stronger for 2022, during which 1.97 billion units are expected to be moved.
Smartphone sales
“Pent-up demand will be unleashed, and we expect vendors to be able to satisfy this hunger, leading to a significant increase in mobile phone sales. Our projections predict that 1.97 billion phones will be sold in 2022 , close to the 2 billion mark the industry was aiming for a few years ago,” said Marina Koytcheva, vice president of forecasting at CCS Insight.
Demand for 5G devices will be a crucial driver (one in three devices sold in 2021 is expected to be compatible), but so will solving a component shortage that has crippled the industry. Although LG’s recent exit from the market was due to a number of reasons, the shortage is believed to have been the last straw. Analysts expect the situation to return to normal early next year, but by then the mid-range segment could be disproportionately affected.
“Small manufacturers are much more exposed than market leaders Samsung and Apple, leaving smaller players in a tough spot,” added Wayne Lam, senior director of research for CCS Insight’s Americas business. “We believe phone makers are prioritizing premium smartphones that offer higher margins over cheaper devices, which hampers markets that rely on more affordable products.”
Although manufacturers, operators and retailers should get a short-term boost, there was a warning that the long-term growth outlook was largely the same as before Covid-19.
“This strong performance should not be confused with the sales peak we experienced in the mid-2010s. In the medium term, the untapped potential of mobile services to gain new subscribers is limited to certain regions such as Africa and ‘South East Asia. In advanced markets, we expect consumers to keep their phones longer than ever, freeing up money to spend on other smart devices such as wearables, smart glasses, smart speakers and other connected gadgets for the home. »
