A recent report showed that smartphone shipments in 2020 are down nearly 10%. As I mentioned Numbers, Global shipments decreased by 8.8% during the calendar year largely due to disruption caused by the global pandemic.
This report does not come as a surprise to anyone as we have seen this type of report issued throughout the year. Much of this has also been confirmed over the past few weeks.
Samsung announced the lowest smartphone shipments in nine years. The company has cut 189.4 million mobile phones worldwide by the end of the third quarter of 2020. This has led to a projected forecast for the year of about 270 million smartphones. This means that 2020 was the first year that the company failed to reach 300 million shipments since 2011.
However, it is not all bad news for smartphone companies in 2021. As mentioned, the pandemic has caused the most drop in shipments which means that most companies expect a rebound in 2021.
One report indicates that smartphone companies can expect double-digit growth this year. Projections predict that the rapid expansion of 5G networks and subsequent demand is likely to drive this growth into the new decade.
The report notes that, given the demand for 5G products, this growth is likely to continue over the next few years until the middle of the decade.
However, this does not detract from the poor performance of smartphone shipments for 2020. The decline of 8.8% continues to be extremely worrying and has caused many concerns across the industry.
The smartphone industry recorded an 8.8% decrease in shipments for 2020
The total number of smartphones shipped for 2020 was 1.24 billion, but it has decreased significantly from last year. However, as mentioned, 5G has provided a bright ray of hope for smartphone companies.
To meet market trends, demand and shipments of 5G devices actually grew in 2020. Shipments reached 280-300 million units. This indicates an increase of 20 million units over the previous year.
The majority of the decline was seen in the first half of 2020. As of March, the sector noticed a 20% year-on-year decline followed by another double-digit decline in the second quarter of the year.
Samsung Electronics, Apple, Huawei, Xiaomi, Oppo and Vivo are the top six smartphone brands for 2020. Samsung and Huawei have all seen their shipments drop by over 10%.
Nevertheless, Apple and Xiaomi have managed to keep up with the industry trend and increase their shipments by more than 10% in 2020. An impressive effort that proves that there is still a lot of life in this sector sparking hopes for improvement in 2021 and beyond