- China, the biggest smartphone market, will likely shrink by 38 million units in 2022, down 11.5% from 2021 and accounting for about 80% of the global reduction in shipment volume thanks to the economic slowdown as global markets drop by 3.5%, the IDC reports.
- IDC previously saw the global market growing by 1.6%.
- Only the war-stricken Central and Eastern Europe region will likely shrink faster, as the compounding effects of Covid-19 lockdowns, geopolitical tensions, and surging inflation deter consumer sentiment.
- The lockdowns affected global demand and supply by reducing demand in the most significant market globally and impacting the already compromised supply chain.
- Apple Inc (NASDAQ:AAPL) seemed to be the least impacted vendor versus its Chinese peers ravaged by the Covid resurgence.
- Thanks to greater control over its supply chain and most of its customers in the high-priced segment, Apple shined.
- IDC expects the smartphone industry to recover in the latter half of the year with a rebound to 5% growth in 2023.
- It saw growth in the wider Asia-Pacific region, excluding China and Japan, likely to finish the year 3% up.
- Price Action: AAPL shares closed lower by 0.09% at $148.71 on Wednesday.
