Macroeconomic headwinds lead to decline in smartphone market
Several massively disruptive political, economic, and social headwinds—including soaring interest rates, looming food and energy shortages, a devastating and needless war, and the changing nature of work – are creating an especially challenging climate. According to the global technology intelligence firm ABI Research, these headwinds will lead to a 7% year-over-year decline in the smartphone market.
“The challenging headwinds and notable inventory corrections conspired to outweigh any growth potential in 1H 2022, which has tempered smartphone demand amid a period of weak seasonality,” said David McQueen, Consumer Technologies Research Director at ABI Research. “In response, ABI Research’s forecasts for global smartphone shipments in 2022 and 2023 have been adjusted downward from original estimates, in terms of both total market and 5G devices, with susceptibility to changes in the economic climate and geopolitical volatility reflected rationally in the revised data. The current expectation is that the total market will decline 7% Year-over-Year (YoY) in 2022 to reach 1.24 billion units, while 5G smartphones will grow 15% in 2022 to around 683 million versus a previously expected increase of 28%. By 2024, ABI Research anticipates that markets will be back on track to link with previous forecast trajectories.”
McQueen shared his findings in a new whitepaper in which ABI Research analysts from throughout the globe have compiled their observations, analyses, and recommendations for critical technologies and end markets.
Stuart Carlaw, Chief Research Officer, concludes, “We should heed one of the most important business lessons learned during 2020 — that technology will not be a casualty of uncertainty, but rather a tool to overcome it. Companies that embrace, invest in, and deploy technology wisely will undoubtedly emerge stronger and better prepared to handle the next spate of challenges on the horizon, no matter the weather.”