It’s plain to see that the coronavirus pandemic is affecting pretty much every single industry and business out there, however, only now are we getting data that is revealing how much of an impact it has actually had. While a lot of tech companies that provide free online services such as social media platforms and streaming sites saw a boom in revenue, many tech companies that provide hardware, particularly those that provide premium or luxury hardware, are seeing a pretty serious drop in sales.
Smartphone manufacturers are the ones that are getting hit the worst here, with most big manufacturers reporting a serious drop in sales. The worst hit are ZTE, Motorola and OnePlus, all of which saw more than a sixty percent drop in sales in the last quarter. If you think that bigger brands are not as badly hit you would be wrong since even the likes of Apple have seen a 23% drop in their sales, with LG seeing a similar drop. Even Samsung which has seen a much lower drop than most other companies saw a 10% decrease in the last quarter which would be alarming news for any company out there.
However, it is important to note that this drop in sales is certainly not going to be permanent. It is caused by a the economic recession that has come with people not being able to go to work, massive layoffs and just a general rule that people just don’t have the kind of money that they used to. Stimulus checks are helping, but with so much economic certainty people are choosing to save the money they get rather than spend it on a new smartphone which is one of the many factors that has led to such a drastic decline in sales in this industry. This might strengthen certain monopolies, though, since a lot of struggling manufacturers would go out of business due to decreased sales and bigger companies that can weather the storm would come out the other side with a larger potential share of the market.
Data Source: CounterPointResearch July 2020 Report
Read next: Asian Countries to Surpass European Economic Giants by 2024, Suggests Data!
Smartphone manufacturers are the ones that are getting hit the worst here, with most big manufacturers reporting a serious drop in sales. The worst hit are ZTE, Motorola and OnePlus, all of which saw more than a sixty percent drop in sales in the last quarter. If you think that bigger brands are not as badly hit you would be wrong since even the likes of Apple have seen a 23% drop in their sales, with LG seeing a similar drop. Even Samsung which has seen a much lower drop than most other companies saw a 10% decrease in the last quarter which would be alarming news for any company out there.
However, it is important to note that this drop in sales is certainly not going to be permanent. It is caused by a the economic recession that has come with people not being able to go to work, massive layoffs and just a general rule that people just don’t have the kind of money that they used to. Stimulus checks are helping, but with so much economic certainty people are choosing to save the money they get rather than spend it on a new smartphone which is one of the many factors that has led to such a drastic decline in sales in this industry. This might strengthen certain monopolies, though, since a lot of struggling manufacturers would go out of business due to decreased sales and bigger companies that can weather the storm would come out the other side with a larger potential share of the market.
Data Source: CounterPointResearch July 2020 Report
Read next: Asian Countries to Surpass European Economic Giants by 2024, Suggests Data!
