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Smartphone Production to See Historic Decline of 16.5% YoY in Q2 2020

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According to a new TrendForce report, global smartphone production for Q2 2020 is estimated to register the largest decline on record for a given quarter, marking a 16.5% YoY drop to 287 million units. The report forecasts total yearly production volume of 1.24 billion smartphone units, an 11.3% decrease YoY.

Trendforce

In addition to market saturation, the global spread of COVID-19 is also believed to be responsible for the historic drop. TrendForce had originally expected Apple to reach yearly production of 200 million units, owing to the release of five new models this year.

However, iPhone production fell by 8.7% YoY during Q1 2020 reaching 37.9 million units due to labour and material shortages following the post-Lunar New Year work resumption.

“As the company releases the new iPhone SE with a consumer-friendly price tag in 2Q20, quarterly iPhone production is expected to stay relatively close to 1Q20 figures, reaching 36 million units. Apple is still planning to release four new 5G handsets in 2H20, but whether the pandemic’s influence will weaken the demand for iPhones going forward remains a noteworthy concern.”

As brands continue to fight over 5G market shares, the yearly forecast of 5G smartphone production volume remains around the 200 million unit mark, with a 16% penetration rate in the overall smartphone market.

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