As it seems for the people that everything after the pandemic is returning to normal. People are spending money, which is very good for the country’s economy, as people contributing money to the market will help the country’s GDP grow and prosper more.
People were locked in houses for quite a long time during the lockdown restrictions invoked at the start of the covid 19 outbreak. This also started a new era start of Work from Home (WFH), and nowhence people believe in the fact that there is surely a need to invest in technological goods which will make their work from home experience faster and better.
What did IDC say about Global Smartphone shipment?
Recently, a study from IDC says that people will definitely invest money into smartphones and other gadgets after the pandemic, which will eventually increase the global shipment volume of smartphones.
IDC also says that according to ‘Worldwide Quarterly Mobile Phone tracker,’ smartphone shipment may see a growth of 2.4 percent in the fourth quarter of the financial year 2020 (Q4 2020). The major reason suggested by IDC is because of the growing demand for the 5G phones. Like all nations, all try their level best to make 5G service to roll out soon, so this will also boost 5G phones across the globe.
The prerequisites for the shipment volume to grow-
This will only work well if the supply chain is well connected with the destination and smartphone manufacturers.
The Vice President of the program Ryan Reith with IDC’s Worldwide Mobile Device Trackers said that despite the less interest of the consumers in the upcoming 5G devices in the previous quarter, he says that there may be a positive response in the next quarter that is the 4th quarter and the next year.
Ryan Reith also said that the restrictions due to the ongoing pandemic had put the expenses on hold for various activities like traveling, dining, etc. The money saved in these sectors is said to be put on by the customers to buying smartphones and other devices.
IDC expects that the compound annual growth rate (CAGR) maybe 1.3 percent, which may range up to 2024. The market expects that the major driving force for the next quarter will be 5G technologies that may be rolling out by next year.
It is also expected that the market share of 5G smartphones shipment will share 10 percent and indeed the growth of 29 percent in 2024, in 5G smartphone shipment alone.
Senior IDC analyst Sangeetika Srivastava says that the shipment volume will eventually depend on the factor of affordable pricing of the 5G technologies. Post covid 19 people are more inclined towards budget-friendly options with great features like many Indian brands.
The Jio effect, which was marked as 4G revolution-
The essential addition to this may also be the effective pricing of the 5G network services by various service providers. If you can recall, last year after the entry of Jio in India’s internet service provider. Jio worked pretty well to bring down the pricing of 4G internet in India, which eventually increased the demand for 4G phones thereafter. Shipment will also see a more than expected growth if a similar scenario comes into play, leading to more adaptation of the 5G technology and the adhering smartphones with it.