Shipments to the largest smartphone market in the world, China, are predicted to decline by 18% as a result of tight COVID-19 limitations that have affected China’s economy as it halted activity in important economic centres like Shanghai, according to research released on Thursday by Gartner.
The research company predicts a 7% decline in smartphone shipments globally, which also considers the demand impact of supply chain snarls and the crisis between Russia and Ukraine. Global computer shipments are predicted to decline by 9.5% this year, according to Gartner. The prediction is consistent with statements made by industry insiders; earlier this month, chipmaker Advanced Micro Devices Inc. predicted a drop in the PC market following two “extremely robust” years.
The senior director analyst, Ranjit Atwal, said, “A perfect storm of geopolitics upheaval, high inflation, currency fluctuations and supply chain disruptions have lowered business and consumer demand for devices across the world, and is set to impact the PC market the hardest in 2022.”
Businesses ranging from chipmakers like Nvidia Corp. to mega-cap IT companies like Apple Inc. and Microsoft Corp. are going to feel the effects of the weak PC and smartphone demand. Beginning next month, those businesses are expected to publish their second quarter profits.