IDC Expects Worldwide Smartphone Shipments to Plummet 11.9% in 2020 Fueled by Ongoing COVID-19 Challenges

FRAMINGHAM, Mass. — (BUSINESS WIRE) — June 3, 2020 — The worldwide smartphone market is forecast to decline 11.9% year over year in 2020 with shipments totaling 1.2 billion units, according to the International Data Corporation ( IDC) Worldwide Quarterly Mobile Phone Tracker. The forecast follows the largest year-over-year decline in history in the first quarter of 2020 (1Q20). Smartphone shipments are now expected to decline 18.2% in the first half of the year as the macroeconomic impact of the COVID-19 pandemic continues to affect consumer spending. Global smartphone shipments are not expected to return to growth until the first quarter of 2021 (1Q21).

"What started as a supply-side crisis has evolved into a global demand-side problem. Nationwide lockdowns and rising unemployment have reduced consumer confidence and reprioritized spending towards essential goods, directly impacting the uptake of smartphones in the short term," said Sangeetika Srivastava, senior research analyst with IDC's Worldwide Mobile Device Trackers. "On the brighter side, 5G is expected to be a catalyst throughout the forecast period, which will play a vital role in worldwide smartphone market recovery in 2021."

From a geographic standpoint, the Chinese economy will continue to be impacted by COVID-19, however signs of improvement are showing as lockdowns and supply chain disruptions have begun to ease a bit. For the most part, factories have resumed operations and the market has opened with some travel and logistical restrictions, leading IDC to believe the China domestic market will only see a single digit decline in 2020. In contrast, Europe has been hit hard by COVID-19, especially in severely impacted countries like Italy and Spain, which will cause a double-digit decline in the region this year. Nonetheless, IDC expects the top vendors in the region to maintain their market shares driven by rotating strategies such as higher flagship launches and forming stronger ecommerce footprints.

"China's recovery has been impressive to say the least, especially given the initial impact of COVID-19 on the country," said Ryan Reith, program vice president with IDC's Worldwide Mobile Device Trackers. "There's no question that challenges lie ahead for the smartphone industry and we believe the economic downturn is going to cause some fluctuation in the vendor and price-tier landscape. The surge in consumer spending around devices that are less mobile than smartphones (PCs, monitors, video game consoles, etc.) will undoubtedly take a share of the consumer wallet that would have been put towards smartphone upgrades and 5G. We believe this will result in even more aggressively priced 5G smartphones than expected prior to the pandemic. This could result in some share wins for the vendors that position their portfolios to capitalize on this change."

A graphic comparing IDC's February 2020 and May 2020 smartphone forecasts is available by viewing this press release on IDC.com.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.

For more information about IDC's Worldwide Quarterly Mobile Phone Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

Click here to learn about IDC's full suite of data products and how you can leverage them to grow your business.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group ( IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.

All product and company names may be trademarks or registered trademarks of their respective holders.



Contact:

Sangeetika Srivastava
+91 80669 91000
ssrivastava@idc.com

Nabila Popal
+1 508-872-8200
npopal@idc.com

Ryan Reith
+1 650 350 6242
rreith@idc.com

Michael Shirer
+1 508 935 4200
press@idc.com




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