Trendforce today released research stating that smartphone shipments in the 2022 calendar will decrease. Performance in the first quarter of 2022 was not impressive and the downward trajectory is expected to continue in the second quarter as China is struggling with its “zero COVID” policy.
Total production forecast for the full year is 1.333 billion devices, which is less than 2021, and Trendforce has even warned that there is still room for negative revisions in the future.
According to Trendforce, one of the main reasons for the unimpressive market performance is the ongoing lockdown in China, which is affecting the economy in general, leading to fewer people buying new smartphones. The country is expected to experience a steep 13% decline from last year.
The landscape will remain difficult in the second half of 2022. Even if / when China manages to escape the current COVID situation, the inflationary crisis will affect other markets. There is also the Indian market which cannot maintain sustained growth for a long time.
Trendforce’s outlook on the share of domestic shipments is that China will remain the most significant market, but will shrink from 24.2% to 21.1%, followed by India with 13.1% of all shipments, with the United States in third place with 11%.
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