By Stephen Nakrosis
Global shipments of smartphones are expected to decline this year by 6.5%, International Data Corp. said Wednesday.
IDC's Worldwide Quarterly Mobile Phone Tracker forecast shows shipments will fall to 1.27 billion units. The latest figure is three percentage points below previous forecasts, IDC said.
The decline "is due to record-breaking inflation, geopolitical tensions, and other macroeconomic challenges that have significantly dampened consumer demand," IDC said.
Much of the decline would come from China, where shipments are forecast to fall 12.5%, or about 41 million units.
Shipments in Central and Eastern Europe are seen falling 17.4%, IDC said.
Shipments in the Asia/Pacific region, which excludes Japan and China, had previously been expected to rise 3%, but now are expected to fall 4.5%, according to IDC.
Shipments in the U.S. will grow 0.3% year over year, and Canada will see 3.2% growth.
IDC also said it is expecting a 0.7% decline for Western Europe.
IDC expects the setback will be short term, with the market growing 5.2% year over year in 2023.
Longer term, IDC expects a five-year compound annual growth rate of 1.4%.
Nabila Popal, research director with IDC's Worldwide Mobility and Consumer Device Trackers, said "despite the unit decline, average selling prices have grown 10% year over year in the second quarter and are forecast to grow 6.3% for the full year."
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(END) Dow Jones Newswires
August 31, 2022 15:38 ET (19:38 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.