Gartner forecast global mobile phone sales to fall 7.1% this year, revising its earlier estimate of a growth of 2.2%, citing inflation; Russia’s invasion of Ukraine and lockdowns in China.
“I have taken out about 150 million mobile shipment out of the forecast and what that say to you is the lifetimes (of mobiles) are increasing”. Ranjit Atwal, senior director analyst at Gartner, told Reuters in an interview.
For every three months people hold on to their phones, around 150 million units get loss.”
Worries of a global recession and high inflation in several countries might influence consumer decisions in spending for discretionary items. Lenovo (0992.HK), HP Inc (HPQ.N) and Dell (DELL.N) are the top three PC makers.
Higher demand for smartphones and PCs during the pandemic had led tech companies to place big orders with chipmakers. Which resulted in shortage of semiconductors that are used in industries including automobiles and telecom.
Mobile phone makers Samsung (005930.KS) and Apple (AAPL.O) saw declining sales in several regions in the first quarter hit by China’s COVID-19 lockdowns.
Smartphone shipments are estimated to decrease 5.8% this year and greater China shipment to fall 18.3%, Gartner said.
-Reuters.
