Tech giants like Apple and Samsung have been struggling in the ongoing COVID-19 pandemic. Reports suggest that there seems to be little hope for the global tech market. A further decline is being predicted as the ultimate fate of many huge companies in 2020.
What is Apple’s way out?
It is believed that Apple has already started to lower its internal targets for the second and third quarters of 2020 for its high-selling iPhone 11. The new iPhone SE should soften the near-term impact, but Apple is expecting a noticeable decline in worldwide sales. The company is cutting back on internal shipments for the rest of the year. However, Apple hasn’t made an official statement yet.
The latest report by DigiTimes claims that global smartphone shipments are now expected to drop by 15% to 1.15 billion units. However, this new research is slightly more pessimistic than earlier predictions made by tech researchers as they observed the worsening conditions and their impact on the global market.
Smartphone brands with a significant presence in the United States and Europe have implemented a strict lockdown with much likelihood of experiencing an economic recession as an impact of the virus.
The companies which are globally competing in the premium segment will face extra pressure too. Customers are starting to stick to tight budgets and smartphones are way down in their priority lists right now. People will hardly spend money on a new phone with a COVID-19 outbreak in their state. DigiTimes Research reported:
“Global smartphone shipments are expected to contract by 15% on year to 1.15 billion units in 2020, as major brands including Samsung Electronics, Huawei and Apple all have slashed their shipment targets for the year in the wake of coronavirus pandemic”
Apple is expected to announce its results for the January-March quarter on Thursday, April 30th. These results will be accompanied by the official revenue guidance for the upcoming quarter. Apple’s announcement for the previous quarter’s revenue will help in providing a more unambiguous indication of how the company is coping as its global demand continues to go down.