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Global Smartphone Production May Suffer Record 16.5% Decline in Q2 2020

Global Smartphone Production May Suffer Record 16.5% Decline in Q2 2020

Global smartphone production could fall as much as a record 16.5% in the second quarter of 2020, says the latest research by TrendForce.

Global production for 2Q20 is now estimated to register another YoY drop of 16.5% to 287 million units, the largest decline on record for a given quarter. TrendForce forecasts total yearly production volume of 1.24 billion units, an 11.3% decrease YoY.

First-quarter worldwide smartphone production reportedly fell by 10% year-on-year to around 280 million units, the lowest in five years. The drop was due to supply chain disruptions caused by the global COVID-19 pandemic.

Before the virus outbreak, Trendforce had expected to once again reach yearly production of 200 million units, thanks to the new iPhone SE, and the four new iPhone models expected in the fall.

Instead, ‌iPhone‌ production fell by 8.7% year-on-year in the first quarter, reaching 37.9 million units. The drop in production was due to material and labor shortages due to the coronavirus outbreak. Apple ranked in third place in the global smartphone market.

While Apple’s new lower-priced iPhone SE‌ is expected to perform close to 1Q 2020 figures, reaching 36 million figures. However, Apple’s next-generation iPhones could cause problems for the Cupertino-based iPhone maker, due to their higher price, given that two of Apple’s largest markets, Europe and the United States, are still struggling with the COVID-19 crisis.

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