When the world is such a difficult situation as it is now, when the border closed, shops, people sit at home and demand falls literally everything, this could not affect smartphone manufacturers. In the end we got a predictable drop in demand, which has become one of the factors that in some countries even changed the traditional top three in sales. But so great was the influence of the coronavirus in the industry or still played a role, other factors, which this year is also enough? One fall in oil prices is worth, which strongly influenced the economies of some major countries that have traditionally provided good sales. This time we’ll talk about this on the example of the relatively stable Europe.
How much sales smartfonov in the period of the coronavirus
Global smartphone sales fell in the first quarter of this year and it’s little surprises. The drop in sales caused by several factors, including pandemic coronavirus COVID-19. In fact, the influence of coronavirus has been studied in a recent study, which covered the markets of smartphones in Europe and France.
Research Institute of Counterpoint published an article about a new study of the smartphone market in the first quarter of 2020. It was already known that the global smartphone market is in crisis, as mentioned in the previous study. Analysts pointed out that in the world has sold 275 million units, which is 17% less compared to the corresponding quarter a year earlier.
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In a new study from Counterpoint Research Institute provides much more accurate data on the European market, and in particular in France. Thus, we learned that the smartphone market in France decreased by 9% against 13% in Germany and 21% in Italy. The decline in sales in these countries are higher than the European average -7%
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Traditional top-3 of producers of smart phones has maintained its position in the European market, with Samsung a leader, ahead of Apple and Huawei. France has developed an interesting situation where Huawei has passed the position more than others and Xiaomi have shifted her from third place. Although Huawei still shows overall good results at its home market in China. According to Peter Richardson, who was one of the leaders of the study Counterpoint, in the first quarter the decline in sales of Huawei in France amounted to 43 per cent in comparison with last year. The reason of falling of sales predictable was the introduction of U.S. sanctions against Chinese companies.
Most from falling sales Huawei Xiaomi won, which apparently ”picked” her clients including due to this secured sales growth from 145 percent. This led to the fact that Xiaomi captured just 11 percent of the market. In the end, as reported in the previous report, Xiaomi is the only company that has secured sales growth in the first quarter of 2020.
Interestingly, many companies do not recognize the decline in sales as something extraordinary and try to keep a pretty face. The seven percent drop in sales do not seem fantastic, but it’s tens of millions of smartphones and billions of dollars of market size.
How fell the sales of smartphones in the background of the crisis
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With falling sales amid the fourth quarter in the European market amounted to as much as 23 percent. This decline seems more significant, but to compare these two quarters are not very logical. Yes, they were coming consistently, but there is a big role played by seasonality. In the fourth quarter, traditionally a high demand on everything. By the end of the year people buy a lot of gifts and are generally more willing to spend money.
A comparison with the same period last year, it seems much more logical because of the lack of the seasonal factors. However, many think that the coronavirus led to this fall in sales rather than a relatively small, amounting to ”only” seven percent.
Of the company in their defense, they say that the fall occurred because of a pandemic, as if ignoring the fact that there is a serious glut in the market of smartphones. Yes, they are needed to everyone, but to say that the drop is only caused by epidemiological factors wrong.
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The effect of coronavirus on smartphone sales
However, the drop in demand is unlikely to lead to the reduction in the number of sales, and just give a little less growth, but it sure would be. Other factors, like falling oil prices, too, would not have a major impact on sales. You will ask, what about the financial crisis? Of course, he had the most serious impact. That’s just called it for the most part it is a pandemic.
People began to sit at home and they just did not need new phones, and considering mass layoffs at the major European factories, they just had to buy a new device. In addition, the shops were closed, and buying online is not all ready. It is possible that this background was able to increase its sales Xiaomi, which is always a big emphasis on remote sales.
And so it turns out that the most influence on the drop in sales of the gadgets had the new coronavirus, which literally paralyzed the society.