Global Smartphone Shipments May Decline 3.1% in 2019

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According to a new report by research firm Canalys, the smartphone shipments will reach 1.35 billion units in 2019, a year-on-year decline of 3.1 percent.

Smartphone Shipments May Decline 3.1% in 2019

 

It is important to note that market uncertainty is clearly prompting vendors to accelerate certain strategies to minimize the short and long-term impact in a challenging business environment, for example, shifting manufacturing to different countries to hedge against the risk of tariffs," Nicole Peng, VP, Mobility, Canalys, said in a statement.

"But with recent US announcements on tariffs on goods from more countries, the industry will be dealing with turmoil for some time." Moving into 2020, most of the major mobile supply chain and the channel will have active contingency plans to mitigate Huawei's decline and be ready for 5G device roll out in many markets, the research firm noted.

Smartphone Shipments May Decline 3.1% in 2019

The research anticipates that 5G and other hardware innovations will be positive drivers for consumer demand and smartphone shipments globally are expected to return to soft growth in 2020, rising 3.4 percent to 1.39 billion. There will be subtle variants that will allow some regions to recover faster than others.

2019 Will Be A Another Challenging Year

International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, said that the global smartphone shipments will face another challenging year in 2019 with volumes forecast to decline 1.9 percent from 2018.

This will mark the third consecutive year of market contraction driven by highly saturated markets in developed countries and slower churn in some developing economies.

Smartphone Shipments May Decline 3.1% in 2019

 

IDC also pointed out that Android's smartphone share will increase slightly to 86.7 percent in 2019 from 85.1 percent in 2018 mostly due to launches of several new models, including a handful of 5G devices announced or coming to market in 2H19.

The research firm also said that 2019 is expected to be another challenging year for new iPhone shipments with volumes expected to drop to 183.5 million, down 12.1 percent year over year.

Smartphone Shipments May Decline 3.1% in 2019

Apple is not likely to deliver a 5G handset in 2019, but given that many telcos and markets are still trying to figure out their 5G strategy, it's unlikely this will impact its market share.

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