Trendforce: Smartphone Market Will Decline In 2022 Due To COVID, Inflation

Trendforce published research today stating that smartphone shipments in calendar 2022 will decline. The performance in the first quarter of 2022 was not impressive, and the downward trajectory is expected to continue in the second quarter as China struggles with its “zero COVID” policy.

The total production forecast for the full year is 1.333 million devices, less than in 2021, and even Trendforce warned that there is still room for negative revisions in the future.

One of the main reasons for the market’s lackluster performance, according to Trendforce, is the ongoing lockdown in China, which is affecting the broader economy, causing fewer people to buy new smartphones. The country is expected to experience a sharp drop of 13% compared to last year.

The outlook will remain challenging in the second half of 2022. Even if China manages to escape its current COVID situation, the inflation crisis will affect other markets. There is also the Indian market that cannot maintain sustained growth for a long period of time.

Trendforce’s view on the share of domestic shipments is that China will remain the largest market, but will decline from 24.2% to 21.1%, followed by India with 13.1% of all shipments, and The United States will rank third with 11%.

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