Like many industries, the disruption of the Covid-19 pandemic is having a devastating effect on the telephone market. Although mobile phone sales are expected to reach their lowest level in a decade in 2020, we have reason to be optimistic about the recovery in 2021. CCS Insight analysts believe that the global demand for mobile phones in 2020 will be reduced by nearly a quarter compared to 2019, about one billion units, down 13% year-on-year. They expect to sell only 1.57 billion devices this year, the lowest in a decade.
Although life in China is beginning to return to normal and manufacturing is rapidly developing in China, the rest of the world is in a blockade. With stores closed and people trapped indoors and working at risk, demand for mobile phones is expected to be very weak in the coming months. This decrease will be very obvious in the second quarter, and global sales are expected to fall by 29% compared to the second quarter of 2019. Mobile phone demand is expected to remain low in the second half of the year, and even if life is expected to return to normal, the generally strong Christmas quarter is expected to see annual sales volume decline of 3%.
Although 2020 will be a severe year for mobile phone manufacturers, as the economy recovers, people postpone purchases and the popularity of 5G, demand is expected to increase by 12% in 2021. CCS Insight analysts believe that 2022 will be even better, with a growth rate of 13% and annual sales reaching nearly 2 billion mobile phones.
5G is a bright spot in the current mobile phone market. Despite the limitations of Covid-19, it is predicted that by 2020, 5G equipment sales will reach 210 million units, which is 10 times that of last year. As cellphone prices fall, they are expected to lead the market recovery next year and will account for 58% of all devices sold in 2024.
