Global Smartphone Sales Plummet Due to COVID-19 Impact
Key Takeaways
- Global smartphone shipments fell 38% year-over-year in February 2020 due to COVID-19
- February 2020 saw only 61.8 million units shipped, down from 99.2 million in February 2019
- Factory closures in China and store shutdowns worldwide have driven the decline, with March expected to be worse
The COVID-19 outbreak has disrupted nearly every aspect of daily life and commerce, and the smartphone industry is no exception. In February 2020, global smartphone shipments experienced their largest ever year-over-year drop, falling 38%. Specifically, only 61.8 million units were shipped that month, compared to 99.2 million units in February 2019.
The decline began when China entered lockdown, forcing major smartphone manufacturers to close factories. Sales in Asia also dropped as consumers avoided stores over health concerns. With the United States and other key markets now closed, March is expected to see an even more significant year-over-year decline. Although some Chinese factories have resumed production, consumer demand remains extremely low. In this climate, purchasing a new smartphone is a low priority for most people.
Apple has closed all its retail stores outside China, and AT&T has shut down 40% of its corporate-owned locations. Even if the pandemic eases, it will take considerable time for smartphone shipments to return to normal levels. This quarter is shaping up to be a challenging period for smartphone companies worldwide.
