Big Picture: The second quarter of 2022 sealed the end of the post-pandemic boom in many sectors of the economy. Global smartphones are no exception, according to mobile phone tracking company International Data Corporation (IDC), as shipments were on a downward trend last quarter.

- Advertisement -

Global smartphone shipments were the highest in the second quarter of 2022, according to IDC. the fall 8.7 percent year on year. This is the fourth quarter in a row showing a decline in the market.

- Advertisement -

Nabila Popal, director of research for IDC’s international tracking team, blames the decline in demand on inflation and economic problems. During the pandemic, the industry’s main challenge has been meeting increased demand in the face of supply chain turmoil. Now the situation seems to be reversed: supply chains are stabilizing and demand is falling. However, Popal believes that demand may simply be delayed rather than disappeared.

- Advertisement -

On a net basis, the largest decline was in Asia. The biggest was in China, where shipments fell 14.3 percent from the second quarter of 2021. There was also a 2.2 percent drop in the Asia-Pacific region (excluding Japan and China), which accounts for half of all global shipments.

Unsurprisingly, the largest percentage decline was in Central and Eastern Europe, at 36.5% year-on-year, with the war in Ukraine being the obvious cause. With the exception of Canada, all other regions saw declines of less than 10 percent.

Same tracker informed Tablet and Chromebook shipments declined this quarter. Chromebook sales are down just over 50% year-on-year, while growth in tablet shipments is flat.

Continuing the trend, the NPD reported almost $2 billion. less expenses (down 13 percent) of video games in the US in the second quarter of 2022 compared to the same quarter last year. The mobile sector is what caused the decline in the first place, but everything but non-mobile subscriptions fell. Industry analyst Mat Piscatella, echoing Popal’s remarks about the smartphone sector, says inflation is one reason.

Large equipment manufacturers have also felt the impact. Intel reported loss half a billion dollars in the second quarter of this year after a 22 percent drop in revenue compared to last year. The company blames this on declining demand for PCs and components.

Returning to smartphones, iPhone revenue Rose 2.77 percent last quarter compared to the previous year, despite industry-wide difficulties. Apple’s sales division also grew 12.11% quarter-on-quarter. iPhone numbers are likely to be higher later this year when the company releases the iPhone 14.