Despite a drop in the mobile market growth, IDC is optimistic that the shipment rate of smartphones will rebound in the final quarter of 2020

The coronavirus pandemic affected the world in more ways than possibly understandable. With each passing day, we learn about some new damages incurred due to the pandemic. Like all other businesses, the mobile phone market also saw a decline in profits during this year. Big companies like Samsung and Huawei have seen a considerable decline in growth during this year in some regions like Western Europe.

This is a little strange too because the pandemic brought on global lockdowns too, and during this time when people were retrained in their homes, mobile apps usage surged like fire. The reason was simple. People could not step out and enjoy the ‘normalcy’ of life, so they started relying heavily on tech apps for information, entertainment, and to stay in virtual touch with each other through video calling apps. Now, this phenomenon should have ideally brought a more profitable boom to the mobile markets because of the increased usage, but by the end of the third quarter of 2020, it has been concluded that people were more focused on trying to spend their lockdown period as smartly as possible, and so, the purchasing of new phones was not the priority of the majority of people.

However, on the other hand, smartphone manufactures have started developing phones that will support the 5G technology once it releases worldwide. Apple’s recent iPhone 12 and its entire line is all designed to provide 5G support to the consumers. So, that is a one really interesting thing that will bring the consumers to the markets again to buy newer and latest smartphone models.

According to IDC, the company that provides market intelligence and advisory services, 5G will lure the customers back and the shipment rate of smartphones will increase again during the upcoming holiday season in the fourth quarter of 2020. The expected market growth is around 2.4% YoY in the Q4, and a 4.4% growth in the smartphone market is expected in the first quarter of 2021 also.

So, as per IDC, 5G will play a crucial role in bringing back the mobile market on its feet, and the good thing is that this technology is the immediate future of the mobile world. It will continue to rise and shine and will propel the manufacture, shipment, and sales of smartphones like hotcakes! This year alone, 5G support has been one of the reasons for almost 10% of smartphone sales. By 2024, 29-30% of smartphone sales will be accounted for 5G.

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