A slowdown in China’s economy and an inflation-driven drop in consumer spending are expected to reduce global shipments of PCs and smartphones this year, according to market research firm Gartner.
Shipments to China – the world’s largest smartphone market – are expected to fall by 18 percent as demand tumbles due to severe COVID-19 restrictions that have halted operations in key economic centers including Shanghai, Gartner said in a report released today. on Thursday.
The research firm expects a 7% drop in global smartphone shipments, which also reflects expected losses due to supply chain issues and conflict between Russia and Ukraine over demand.
“A perfect storm of geopolitical turmoil, high inflation, currency fluctuations and supply chain disruptions have reduced business and consumer demand for devices around the world and will have the strongest impact on the PC market in 2022,” said Ranjit Atwal, Senior Analyst. to Gartner.
Gartner expects global computer shipments to fall 9.5% this year.
The forecast reflects comments from industry players: Chip maker Advanced Micro Devices Inc said earlier this month that the PC market is set to decline after two “very strong” years.
Weak demand for PCs and smartphones is likely to put pressure on companies ranging from chip makers like Nvidia Corp to mega-cap tech firms including Apple Inc and Microsoft Corp. These companies are due to report second quarter earnings starting next month.
Earlier this month, IDC’s Worldwide Quarterly Mobile Phone Tracker projected that global smartphone shipments were expected to decline by 3.5 percent to 1.31 billion units in 2022. “.
As a result, original equipment manufacturers, including Apple and Samsung, have slashed orders for this year. However, the market research firm claims that Apple appears to have been the least affected by this supplier. According to the report, the number of 5G devices will also grow by 25.5% year-on-year in 2022.