How COVID-19 Affected On Phone Market

Alice MJ

Apr 17, 2023 • Filed to: Latest News & Tactics • Proven solutions

Like everything else, it has had a huge impact on the mobile business too. Though some technology sectors, like cloud services, have excelled throughout the coronavirus pandemic.

covid19 affects phone market

Anyway, in this whole article we are going to discuss How COVID-19 affected the Phone Market.

What is the main impact in the Phone Market?

By counterpoint research report, It is going to be noticed that a sharp drop in the result on various factors, from Production to Demand issue of Phone. Also here occurred the fastest decline in the history about 13% year to year loss in Q1. And Most of the phone companies are dealing with this problem.

How was the phone market affected?

1. Fall of demand

To prevent people from COVID-19, most of the country have announced emergency lockdowns. So For this reason many people have lost their jobs, Someone's salary has been reduced, and some people's salaries are completely off.

Even only in U.S. unemployment has reached 14.7%. And this scenario not only in the U.S but also in the entire world. Think about it, More than 20 million people exist without inconsistent income.

So definitely people wish to expend their limited money on products that are very important in daily life such as food, medicine etc.

In this situation of economic distress, it can be expected that people won’t likely to buy a new phone unless they have none. Even they are not ready to upgrade the old one.

As a result, the phone market is affected by falling demand for phone and phone accessories too. But it is not that the outbreak rendered phones less useful, that means changed consumer’s priority for adaptation.

fall of demand

2. Decline in production

As an example, it can be considered that the big giant Samsung was forced to reduce its monthly production by about 10 million units in unit, [According to KOREAN news sources]. And this is less than its average monthly production. Factories in India and Brazil that are shut down, so they would not be able to continue their normal production rate even if it is economically viable.

Manufacturers have backed in production in a light amount. Though cost of production increased due to health safety issues. Also, as Demand fallen, production should decline theoretically. Hence, for overall reason it can be noticed that a Decline in production has occurred for COVID-19.

3. Rise in Usage

As locked down, Majority people are forced to stay at home. And they are passing their time by YouTube streaming, gaming, social media browsing. So smart phones are experiencing top levels that others normal time.

If we think about the education system, now all are continuing their function via real-time programs like zoom, meet, social media live etc. Hence, students also depend on smartphones over laptop or pc for reliability, as smart phones are very portable.

On the other hand, business has moved through online. So it can be said that within the COVID-19, phones have become a more prominent asset than ever before.

Of course this increase in usage will help to make a small amount of money for some company, As the app sales could likely rise. Point to be noted that cellular data service providers benefited from growing over data consumption.

4. Market shares

It is very clear in the Counterpoints report that there occurred some shifts in smartphone market shares. Indeed, all smart phone or phone companies, vendors, manufacturers, marketers, and even the end level sellers have experienced economic aridness. But the rate is not the same at all. Samsung has now 20% market share in Q1 of 2020 but in Q1 2019 that was 21%.

As one dropped share others took it in stride. Apples increased by 2% through Huawei’s remain same. All of these companies have fewer shipments in 2020 than 2019. As the lockdown continues, hopefully it could cause some more changes in the phone market.

5. Develop 5G

Before the pandemic the industry was trying hard to bring 5G networks with updated technology to the phone market. The idea was going to happen with declining revenue and a shrinking market, shifting to 5G may not take place soon. But companies like Apple, Samsung already released their 5G devices and services.

But customer adoption did not happen as the companies thought initially. But indeed they earned some revenue by doing this in these situations.

By adopting the 5G service, more manufacturers may try to sustain their increasing automation in light of the virus. One thing is clear: which companies are producing products for all classes of people like Xiaomi will suffer more than apple.

The main impact of COVID-19 is yet to be felt. ’’Most smartphone companies expect Q2 to represent the peak of the coronavirus’ impact’’ says Canalys senior analyst Ben Stanton. “It will test the mettle of the industry, and some companies, especially offline retailers, will fail without government support.”

Will the phone companies can Recover?

All the smart phone companies have had a bad impact through COVID-19 and it is not over yet. And in today's digital world a smartphone is becoming a necessity for people more than luxury. So hopefully they will recover after the pandemic but it should be put on head that it won’t be a magic or immediate process. People will recover their earnings first then they will care for their needs.

And I agreed with Mr. Ben Stanton that some companies, may be smaller companies or be offline retailers will fail to recover. Government should support them.

For any update news about the phone be with Dr.Fone and if there is any question let us know.

Alice MJ

Alice MJ

staff Editor

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