With the second quarter of 2020 (Q2) closed, companies have started reporting their financial reports. Market research companies like Counterpoint, in turn, use this data to create statistics on industry revenues. In the case of smartphones, there was a drop of 24%, compared to Q2 of 2019.
The reason is simple: the worldwide pandemic of COVID-19. During the first quarter of 2020, the smartphone industry was still “getting used to” the effects of the pandemic. It was now in the second quarter that the consequences of the pandemic were felt, financially.
The entire global economy suffered from the pandemic and smartphones were no exception. Consumers have lost purchasing power due to unemployment and lay-offs. In addition, quarantine measures have caused stores and shopping centers to be completely empty.
On the other hand, online sales have seen growth, however, it has not been enough to make the spectrum positive. Counterpoint also reports that June was a positive month in isolation.
Europe recorded the biggest decrease in sales
In Europe, preventive quarantine measures have had some success in slowing the progress of COVID-19. One consequence was a decrease in smartphone sales.
As mentioned, what saved smartphone sales from a further drop was online sales. Even large retailers saw growth in the online sales department, as expected. Consumers had to get used to online consumption, as an alternative.
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