Manufacturers behind smartphones have become concerned about the rapid decline in profitability over the past two months. These declines are prompted by the Covid-19 Pandemic, which has infected the globe over and prompted numerous deaths. Strategy Analysts noted that sales dropped by 38% over February, with that percentage expected to increase to 87% over March. Some analysts predict that by April 2020, the smartphone industry will see an overall collapse of 92%. It’s being reported as the most significant drop in valuations since smartphones were invented.
The 1st defining impact on the smartphone market was Covid-19 breaking out throughout China. It prompted multiple Chinese, Taiwanese, Japanese and Vietnamese factories to shut down their respective operations. Smartphone manufacturing was halted immediately after these closures, with shipments dropping from 99.2 Million during February 2019 to 61.8 Million in February 2020. This also marked the month where the Mobile World Congress Showcase was shut down in Barcelona. What was slated to be one of the most significant months for the smartphone industry became a detrimental period with lasting effects.
The Samsung Corporation expressed that they’d recently revealed S20 Smartphones had seen minimal sales, with online orders being lower than the last several years. It prompted Samsung to warn its investors that financial forecasts would be altered to lower valuations. This extended to the Apple Corporation, who noted that development of their latest iPhone is constrained, and that minimal global supply will be provided.
Both Samsung and Apple recorded lead-up events toward declining sales. It was noted that Supply & Demand immediately declined across Asian Territories. Smartphone sales then plummeted globally as Covid-19 became to spread throughout dozens of nations. Multiple analysts have pointed out that this will be a crucial period for the smartphone industry, which will see little advancement for the 1st time in ten-years.
It’s expected that shipments for pre-ordered devices with Apple, Samsung, Sony, Huawei and other smartphone manufacturers, will be delayed until June or later. Additional government legislation could prompt these home-based facilities across Europe and North America to begin developing medical supplies. This will force financial challenges onto all smartphone manufacturers.