Global smartphone shipments are expected to decline 6.5% this year due to high inflation and weak demand around the world, according to a U.S.-based research company.
"The decline is due to record-breaking inflation, geopolitical tensions, and other macroeconomic challenges that have significantly dampened consumer demand," International Data Corporation said in a statement on Wednesday.
Smartphone shipments in Central and Eastern Europe are expected to be down 17.4% in 2022, while they are estimated to fall 4.5% in the Asia-Pacific region, excluding Japan and China.
The largest drop is expected to come from China, which is forecast to decline 12.5% this year, according to the company.
The latest estimate for global smartphone shipments stands at 1.27 billion units for 2022, while the International Data Corporation expects the smartphone market to rebound in 2023 with an annual growth rate of 5.2%.
"The supply constraints pulling down on the market since last year have eased and the industry has shifted to a demand-constrained market," Nabila Popal, research director with company's Worldwide Mobility and Consumer Device Trackers, said in the statement.
She also said foldable devices, the fastest growing segment in smartphone market, is expected to increase 70% annually to reach 13.5 million units shipped this year.
The global shipments of 5G devices are expected to account 54% of all shipments, while 5G is projected to reach a volume share of 79% in 2026.
