Mobile Phone Industry to Lose $51B in Revenue Amid COVID-19 Pandemic

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

Here is a list of all Microfinance Banks’ USSD Codes in Nigeria.

A Microfinance bank is a type of bank that offers small loans, or microloans, to individuals, entrepreneurs and small...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...
- Advertisement -

The coronavirus outbreak caused the worst smartphone market contraction in history, as global demand plummeted in the first and second quarter of the year. Although the last few months witnessed a recovery in the number of smartphone shipments, the entire industry is expected to witness substantial revenue losses this year.

Mobile Phone Industry to Lose $51B in Revenue Amid COVID-19 Pandemic
Mobile Phone Industry to Lose $51B in Revenue Amid COVID-19 Pandemic –

According to data presented by Stock Apps, the global mobile phone industry is forecast to lose $51.1bn in revenue by the end of 2020, a 10% drop year-over-year.

Demand for New Devices Crushed Amid Coronavirus Crisis, Revenues Under 2017 Levels

The revenues of the global mobile phone industry have been constantly rising over the last years. In 2016, the entire industry generated $435.7bn in revenue, revealed Statista data. Over the next twelve months, this figure rose to $462.6bn. By the end of 2019, global smartphone sales revenue surged to $506.2bn, a 16% jump in three years.

However, as half of the world entered a lockdown, demand for new devices has been crushed in the first months of 2020. The IDC’s Worldwide Quarterly Mobile Phone Tracker data showed smartphone vendors shipped 275.8 million units worldwide between January and March, a 25% plunge compared to December 2019 figures and an 11% drop year-over-year.

Mobile phones industry revenue from 2016 to 2023 (in billion U.S. dollars)
- Advertisement -

Mobile Phone Industry to Lose $51B in Revenue Amid COVID-19 Pandemic

Smartphone shipments by vendor worldwide from Q1 2014 to Q3 2020 (in million units)

Mobile Phone Industry to Lose $51B in Revenue Amid COVID-19 Pandemic

The strong downsizing trend continued in the second quarter of the year, with millions of consumers cutting down their budgets and prioritizing spending amid the COVID-19 crisis.

From the consumer standpoint, unless replacing a broken phone, smartphones are mostly a discretionary purchase, which became unnecessary in times of economic uncertainty. With global demand plummeted, smartphone shipments dropped 16% year-over-year to 278.4 million units between April and June.

- Advertisement -

Statistics indicate smartphone shipments showed positive movement in the third quarter of the year, with vendors shipping 353.6 million handsets. Still, 4.7 million less compared to the same period a year ago.

Although the industry shows a recovery from the initial impact of the coronavirus, the positive Q3 figures won’t be enough to close the gap noted in the first half of the year.

Statista data indicate the global mobile phone industry revenue is expected to drop to $455.1bn this year, under 2017 levels. However, the following years are set to witness a positive trend, with revenues rising by 21% and reaching $554.4bn by 2023.

Samsung Still the Market Leader, Apple’s Market Share Plunged in 2020

With almost 1.8bn cellular subscriptions and $117.8bn in revenue in 2020, China represents the world’s largest mobile phone industry. However, the Chinese market has also been affected by the coronavirus outbreak, with revenues decreasing by 5.4% year-over-year.

- Advertisement -

As the second-largest mobile phone industry globally, the United States is expected to generate $57.4bn in revenue in 2020, a 15.7% drop YoY. Brazil, Japan, and India follow, with $21.4bn, $21.2bn, and $21.1bn in revenue, respectively.

Analyzed by vendors, Samsung represents the market’s largest player with almost 23% market share in the third quarter of the year. Huawei ranked second with a 15% market share between July and September. Xiaomi follows with a 13.1% share.

The IDC data revealed Apple market share dropped significantly this year, falling from over 20% in the fourth quarter of 2019 to 11.7% in September.


Western Digital Expands Flash Portfolio for Scaling Data-Centric Architectures in the Zettabyte Era


Building on a unique and diverse product portfolio across HDD and flash, Western Digital (NASDAQ: WDC) today announced a suite of new NVMe SSDs for enabling next-generation, data-centric architectures for data centres, industrial IoT, automotive and client applications.

Dangote Sugar Refinery Plc: Revenue expansion strengthens in Q3

Dangote Sugar released its 9M’20 financial statements showing remarkable growth in both topline and bottom-line figures. The company’s Q3 revenue grew 55% y/y to ₦57.3 billion, translating to a 9M’20 figure of ₦160.5 billion and a growth rate of 37% y/y (Vetiva estimate: ₦145.3 billion).

ABC Transport Plans N1.4bn Capital Injection

ABC Transport Plc is planning to inject additional capital of N1.4 billion into its operations. The capital would be raised through right issue and bond from existing shareholders and the open market.

Read Also:  Samsung and Apple No Longer Make Up 50% of the World’s Active Smartphones as Chinese Brands Grow

NCC Approves e-SIM Trial for MTN, 9mobile

The Nigerian Communications Commission (NCC) has granted approval for two mobile network operators (MNOs), MTN Nigeria and 9Mobile, to carry out trial on the workability of embedded Subscriber Identification Modules (e-SIM) Service in Nigeria.

How NCC Boosted FG’s Revenue By N344.71bn in 5 Years – Danbatta

The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof Umar Garba Danbatta, has told the House Committee on Telecommunications how the telecoms agency contributed to the revenue drive of the Federal Government by generating and remitting N344.71 billion to the Consolidated Revenue Fund (CRF) in the last five years.

The Covid-19 pandemic has exposed the urgency for African countries to optimise public revenues from their natural resources

Africa will not meet the Sustainable Development Goals (SDGs) target of eliminating extreme poverty by 2030. This slow progress derives from resource leakages and increasing poverty rates, as 64.3% of sub-Saharan Africa is still living in multidimensional poverty. While other regions of the world are experiencing rapid poverty reduction, the decline is much slower for sub-Saharan Africa. Human Development Report – 2019.

Top 10 Smartphone Brands Capture 88% Market Share in Q2 2020 as Huawei and Samsung Tie at 20%

Worldwide smartphone sales suffered a hit during the second quarter of 2020, dropping by 20.4%. In total, 294.7 million units were sold during the three-month period compared to 370.3 million units in Q2 2019.

Ogun Govt Releases N500,000 to Trade Associations, Artisan Groups

In a bid to further enhance rapid economic growth in Ogun State as well as ensure the wellbeing of its citizenry, the State Government has released the sum of Five Hundred Thousand Naira as subvention to Trade Associations and Artisan Groups.

You Should Probably Shut Up At These Critical Times

Talking can help you connect with others, but it can also destroy relationships. Here are some critical times when you should shut your mouth—before you put your foot in it.

Sani Abacha loot – The only guaranteed money back scheme in Nigeria

The late General Sani Abacha was a Nigerian army general and dictator who ruled Nigeria from 1993 until his death in 1998. The Sani Abacha administration period had a boom in the country’s federal exchange reserve from $494 million in 1993 to $9.6 billion by the middle of 1997 and the administration also reduced the external debt of Nigeria from $36billiom in 1993 to $27 billion by 1997.

- Advertisement -
Mobile Phone Industry to Lose $51B in Revenue Amid COVID-19 Pandemic - Brand SpurMobile Phone Industry to Lose $51B in Revenue Amid COVID-19 Pandemic - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Mobile Phone Industry to Lose $51B in Revenue Amid COVID-19 Pandemic - Brand SpurMobile Phone Industry to Lose $51B in Revenue Amid COVID-19 Pandemic - Brand Spur

Latest News

CBN Introduces the “Naira 4 Dollar Scheme” for Diaspora Remittances

In an effort to sustain the encouraging increase in inflows of diaspora remittances into the country. the Central Bank...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Mobile Phone Industry to Lose $51B in Revenue Amid COVID-19 Pandemic - Brand SpurMobile Phone Industry to Lose $51B in Revenue Amid COVID-19 Pandemic - Brand Spur