You might think that coming out of a pandemic with people back on the road would boost the demand for smartphones, but it seems the opposite is true as sales could fall 10% or more this year.
That’s according to Qualcomm, which in the latest revenue release – as noted by The Verge (opens in new tab) – predicted there could be a “low double-digit percentage drop” in the number of handsets this year, compared to last year. That’s a bigger drop than expected, with the company revising an earlier estimate it had made of a decline in the average single-digit percentage.
So why the lack of demand? Qualcomm points to the uncertain economic environment, which makes sense — smartphones are often expensive, and new ones may not be at the top of people’s shopping lists when money is a concern.
Interestingly, Qualcomm’s report also claims that due to a “rapid deterioration in demand” coupled with the “easing of supply constraints” in the semiconductor industry (which previously slowed smartphone production), some companies now have large inventory. from phones that are difficult for them to move.
Qualcomm didn’t name specific companies, but The Verge notes that both Samsung and Apple are likely to be among them, as previous reports suggested Samsung had a large number of handsets in stock, while Apple has reportedly ditched plans to cut production of the iPhone. raise 14 line.
Analysis: Black Friday phone deals could be better than usual this year
If Qualcomm’s claims and predictions are correct – which they probably are, given that the company supplies components for a huge selection of smartphones, so would know what’s going on in the industry – then many companies may have stocks they’d like to shift.
In fact, Qualcomm’s report notes that there is “about 8-10 weeks of increased inventory,” so things may not stabilize until 2023.
All of this means companies may be tempted to cut phone prices to help them shift over the next two months, and that timing lines up nicely with Black Friday, which falls on November 25 this year.
So it’s likely we’ll see some notable deals on smartphones, both on Black Friday itself and the days around it, including Cyber Monday on November 28, as these are excellent opportunities for smartphone makers to increase their sales.
Moreover, the whole reported reason for the lack of demand is that money is tight and costs are rising for many people, so reduced prices are likely to be all the more important and attractive to buyers and sellers. That’s why we highly recommend keeping an eye out for the best Black Friday phone deals this year, with deals already starting to pop up.