According to global technology intelligence firm ABI Research, changes in the economic climate and geopolitical volatility will lead to a seven percent year-over-year decline in the smartphone market.
“The challenging headwinds and notable inventory corrections conspired to outweigh any growth potential in 1H 2022, which has tempered smartphone demand amid a period of weak seasonality,” said David McQueen, Consumer Technologies Research Director at ABI Research.
In response, ABI Research said its forecasts for global smartphone shipments in 2022 and 2023 have been adjusted downward from original estimates, in terms of both total market and 5G devices.
The current expectation is that the total market will decline seven percent year-over-year (YoY) in 2022 to reach 1.24 billion units, while 5G smartphones will grow 15 percent in 2022 to around 683 million handsets versus a previously expected increase of 28 percent. By 2024, ABI Research anticipates that markets will be back on track to link with previous forecast trajectories.
McQueen shared his findings in ABI Research’s new whitepaper, 2022 State of Technology Report: The Future of Technology in a Tumultuous World. ABI Research analysts from throughout the globe have compiled their observations, analyses, and recommendations for critical technologies and end markets.
Stuart Carlaw, Chief Research Officer, concludes, “We should heed one of the most important business lessons learned during 2020—that technology will not be a casualty of uncertainty, but rather a tool to overcome it. Companies that embrace, invest in, and deploy technology wisely will undoubtedly emerge stronger and better prepared to handle the next spate of challenges on the horizon, no matter the weather.”