Coronavirus Outbreak: Global smartphone shipments to fall 12 percent to 1.2 billion units in 2020, says IDC

In China, where the economy has begun to reopen and factories have resumed operations, IDC expects a single-digit decline in this year.

|Jun 04, 2020, 11:27:26 IST

Global smartphone shipments will fall nearly 12 percent to 1.2 billion units in 2020, market research firm IDC said on Wednesday, citing lower consumer spending due to the economic impact of the coronavirus crisis.The COVID-19 pandemic has not only disrupted business supply chains, with major smartphone makers such as Apple Inc and Samsung Electronics Co Ltd flagging financial hits, but also squeezed consumer spending worldwide."Nationwide lockdowns and rising unemployment have reduced consumer confidence and reprioritized spending towards essential goods, directly impacting the uptake of smartphones in the short term", said Sangeetika Srivastava, senior research analyst with IDC.[caption id="attachment_7413731" align="alignnone" width="750"]

Representational Image[/caption]Apple, which was forced to shut retail stores in the United States and Europe following the outbreak, introduced discounts on the iPhone 11 in China and released a new low-price SE model to weather a plunge in global smartphone demand.Research firm TrendForce said in April it expected global smartphone production to slump a record 16.5 percent in the June quarter from a year earlier.That follows a 10 percent drop in output worldwide in the March quarter, when the outbreak spread and peaked in China before sweeping through Europe and the United States.

However, shipments from China's factories to vendors rose 17 percent in April from a year earlier, suggesting signs of an early rebound in domestic demand in the world's largest smartphone market.In China, where the economy has begun to reopen and factories have resumed operations, IDC expects a single-digit decline in this year.The research firm also expects upcoming 5G deployment to help the recovery of smartphone shipments next year, adding it does not expect growth to return until the first quarter of 2021.

Why AI notetakers are raising serious privacy and security concerns

AI notetakers promise effortless meeting summaries, but experts warn they could expose confidential conversations, corporate secrets and personal voiceprints. As businesses increasingly adopt AI-powered meeting assistants, questions over data storage, privacy, consent and legal risks are becoming impossible to ignore

5 min read

China's low-cost AI models are changing the global AI race. Here's why Silicon Valley is worried

As Chinese firms continue to improve performance while keeping prices low, the AI race is no longer just about building the smartest model—it is increasingly becoming a battle over who can deliver the best value

2 min read

China's Kimi K3 challenges US AI leaders with frontier-level performance at lower cost

Chinese artificial intelligence startup Moonshot AI has unveiled its latest open-weight AI model, Kimi K3, with early results suggesting it could compete with some of the world's most advanced AI systems developed by leading US companies

2 min read

How did Instagram run ads promoting child abuse in India?

India has issued a notice to Meta after an investigation alleged that Instagram displayed paid advertisements promoting child sexual abuse material. MeitY ordered Meta to remove such Instagram ads and explain within seven days how they were approved

8 min read

Why has India halted WhatsApp’s username feature before launch?

India has halted WhatsApp’s planned username feature, citing concerns about cybercrime, impersonation, and law enforcement challenges. As Meta races to address security concerns, here’s why MeitY has paused the rollout, what the feature does, and how it could influence privacy and online safety in India

3 min read

Up Next