US Smartphone Market to Grow 2% YoY in 2022 as Inflation Weakens Demand

LOS ANGELES and DENVER and BUENOS AIRES, Argentina and TORONTO and MONTREAL and LONDON and NEW DELHI and HONG KONG and BEIJING and SEOUL, South Korea, June 9, 2022 /PRNewswire/ — The US smartphone market will experience 2% YoY development in 2022, according to Counterpoint’s Sector Outlook Service. The most up-to-date forecast has been revised downwards from the former forecast of 6% YoY development in 2022, as demand will be suppressed in the remaining quarters because of to inflationary pressures.

Commenting on the forecast and shopper need, Investigate Director Jeff Fieldhack explained, “We commenced the yr with robust offer-in momentum, with Q1 2022 viewing 6% YoY development thanks to good postpaid need. However, we are changing our shipment forecast quantities downwards as we are significantly seeing the impression of inflation in the US market place. Very last year, we saw supply as a a lot more substantial issue as chipset shortages impacted smartphone producing. However, this yr, it is additional of a need concern.”

Commenting on channel dynamics, Senior Study Analyst Maurice Klaehne reported, “Prepaid product sales will be most affected by weak need as this is the most cost-sensitive segment in the US. This is also the place any price increases for gadgets will be most intensely felt by people. We see national retailers emotion the impact of inflation, but it is a lot more of a mixed bag. Walmart, a a single-prevent store for groceries, tech products and solutions and substantially a lot more, could be a lot less impacted compared to Most effective-Purchase, which is a extremely specialised tech retail retailer. Consumers will shop the place it will make the most perception for them to get as considerably performed as possible. Postpaid, on the other hand, is more insulated. Even with Verizon and AT&T increasing provider system charges, we really don’t count on there to be a sturdy change from postpaid to pay as you go.”

Exploration Analyst Matthew Orf included, “In spite of the headwinds in prepaid, there are several scheduled industry events that will aid small-close smartphone revenue in 2022. 3G sunsets will pressure carriers to transfer subscribers on to new LTE and 5G units. Dish will also will need to transfer thousands and thousands of subscribers to its new MVNO spouse AT&T. In addition, Verizon will attempt to go as lots of TracFone subscribers above to its community from AT&T and T-Cell. All these occasions will involve consumers to change to new gadgets, predominantly LTE, which will enable sustain smartphone sales despite inflationary pressures.”

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Source Counterpoint Analysis

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