Market research firm Canalys has revealed that the global smart phone market will see a drop of more than 3% under the US government’s decision to ban companies from working with Huawei. Smartphone shipments will reach 1.35 billion units in 2019 alone.
“It’s important to note that market uncertainty clearly drives vendors to accelerate some strategies to reduce short-term impact,” said Nicole Bing, vice president of the company. And long in the difficult business environment, for example, conversion of manufacturing to different countries to hedge tariff risks.
“With the recent US tariff declarations on goods from more countries, the industry will be dealing with unrest for some time,” he said in a statement. As 2020 approaches, most supply chains and major mobile phone channels will have active contingency plans to mitigate Huawei has retreated and is ready to launch fifth-generation 5G devices in many markets, the research firm said.
Canalys expected positive growth of smartphones in 2020 with an expected rebound to 1.39 billion global shipments, equivalent to an increase of 3.4 per cent, and many regions will recover faster than other regions due to differences in lifecycle lengths.