The COVID-19 outbreak caused the worst smartphone market contraction ever, as international demand dropped in the second and first quarters of 2020. Because of this, yearly smartphone prices dropped by 10% YoY to 1.38 billion units in 2020. Though this season is expected to see a substantial recovery of the whole marketplace, shipments will stay under pre-COVID-19 levels.
Based on statistics presented by purchase stocks, international smartphone prices are expected to reach 1.53 billion units in 2021, 5 million less than in 2019. Apple’s and Xiaomi’s shipments are increasing, Huawei witnessed the largest revenue fall.
Throughout the previous ten years, global smartphone prices increased appreciably. Between 2007 and 2017, annual imports jumped 12 times, increasing by 122 million to over 1.5 billion, demonstrated Statista and Gartner data. In 2018, smartphone sellers sold over 1.55 billion tablets worldwide, the leading figure up to now. In the following twelve weeks, this figure fell by 16 million.
However, because half of the world entered a lockdown, the need for a new smartphone is defeated. From the customer perspective, unless replacing a busted mobile, smartphones are largely a discretionary purchase that became unnecessary in times of financial uncertainty. With international demand plummeted, smartphone prices dropped by 162 million units to 1.38 billion in 2020, under 2015 levels.
However, not all smartphone sellers were influenced by the COVID-19. The IDC and Gartner data revealed Apple’s smartphone prices jumped by 8% YoY to 206.1 million units in 2020. China’s top technology firm, Xiaomi, has seen even more remarkable expansion. Statistics reveal the company sold 147.8 million mobiles this past year, 17% more than before the pandemic.
As the industry leader, Samsung sent 266.7 million tablets in 2020, 9% less than one year ago. The IDC and Gartner data revealed Huawei witnessed the largest sales fall amid the COVID-19 catastrophe, with international imports falling by 21% YoY to 189 million units this past year.
Global Cell Phone Earnings to Jump by 5.7% YoY to $504.2B at 2021
The Statista data showed that the global cell phone business produced over $477bn in earnings this past year, $13bn less than before the pandemic struck. But this figure is predicted to rise by 5.7% YoY and reach $504.2bn in 2021. The rising trend is set to continue in the subsequent years, with the whole industry reaching $562.6bn worth by 2025.
Since the world’s biggest cell phone market, China is expected to make 25% of worldwide revenues this season, or $123.7bn. The United States of America ranked as the second-largest market with $58.9bn in earnings, twice less than top China. Brazil, India, and Japan follow $23.7bn, $23.3bn, and $20.9bn in cell phone earnings.
Additionally, data show that the average cost per unit at the cell phone business is forecast to reach $351.38 in 2021, up from $349.67 a year. This figure is forecast to increase to $352.09 in 2022 and then slightly fall to $351.58 from 2025.