Demand for new smartphones is shrinking in the first quarter of 2020

Yesterday we received a report from Counterpoint Research specializing in market research, and we now have another report from Canalys Market Performance. The results are similar, with a total decrease of 13% in the level of smartphone shipments, with less than 300 million units shipped in the first quarter of this year.

According to the analyst Shengtao Jin Foundation of Canalys , a few of the manufacturers of smart phones it has been able to withstand the impact of the epidemic on the global economic situation. Samsung, Apple and Huawei recorded some losses, while Xiaomi managed to increase its shipments by 9 percent compared to the same period last year. Vivo also recorded a slight jump in sales, but this must change.

Ben Stanton, the company’s chief analyst, confirmed what many fear, which is the appearance of peak impact in the next quarter. According to Ben Stanton, some physical stores will fail without government support, which will affect the overall smartphone market.

Cash flow will be crucial in the coming months, and it is expected that all major manufacturers will reduce their expenditures on marketing and new strategies. However, it is necessary to “strike a balance”, otherwise companies that have managed to adapt faster to the situation will beat the slowest competitors.