Global smartphone shipment slowdown could hurt Vietnam
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Manufacturing hubs like Vietnam and South Korea could be hurt this year as global smartphone shipments suffered its worst quarterly drop on record, signaling a cool down in consumer demand.
Shipments declined 18.3% year-on-year in the December quarter to a little over 300 million units, U.S.-based International Data Corporation said Thursday.
Xiaomi’s shipment volume declined steepest at 26.3%, followed by vivo (down 18.9%) and OPPO (down 15.9%).
For the year, global shipments fell 11.3% and marked the lowest total for a decade, the researchers said.
“We have never seen shipments in the holiday quarter come in lower,” Nabila Popal, research director at IDC.
Along with inflation and economic uncertainties, Covid lockdowns in China were another factor that hurt the industry, including Apple Inc.’s iPhone sales, she said. “Heavy sales and promotions during the quarter helped deplete existing inventory rather than drive shipment growth.”
Smartphones are among the largest exports for Korea and a key source of income for Vietnam as Samsung Electronics operates factories in both countries.
Samsung last quarter reported its biggest profit fall in over a decade, primarily led by a drop in demand for semiconductors. The company’s exposure to smartphone sales is amplified by its role as the leading provider of memory and displays for the industry.
Questions & Answers
Q.Which specific Asian countries are identified as potentially suffering due to the global smartphone shipment decline?
Which specific Asian countries are identified as potentially suffering due to the global smartphone shipment decline?
The article states that manufacturing hubs such as Vietnam and South Korea could be negatively affected. Samsung Electronics operates factories in both these countries, making them significant players in smartphone production.
Q.What was the total decrease in global smartphone shipments for the entire year, and how does this compare historically?
What was the total decrease in global smartphone shipments for the entire year, and how does this compare historically?
Global shipments for the full year fell by 11.3%. Researchers noted this is the lowest total for a decade, indicating a significant downturn in consumer demand over an extended period.
Q.Aside from inflation and economic uncertainties, what other major factor contributed to the industry's struggles according to IDC?
Aside from inflation and economic uncertainties, what other major factor contributed to the industry's struggles according to IDC?
Nabila Popal, research director at IDC, pointed out that Covid lockdowns in China were another factor that negatively impacted the industry. This included affecting sales for major players like Apple Inc.’s iPhone.
Q.How did Samsung's performance align with the general industry trend, and what makes them particularly exposed to the smartphone market?
How did Samsung's performance align with the general industry trend, and what makes them particularly exposed to the smartphone market?
Samsung reported its biggest profit fall in over a decade, primarily due to a drop in semiconductor demand. Its exposure is amplified as it's a leading provider of memory and displays for the smartphone industry.
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