China’s sluggish economy could affect global PC, smartphone shipments

  • There could be 7% dip in smartphones and a 9.5% decline in computer exports globally.
  • Smartphone shipments to China are predicted to plunge by 18% on account of strict COVID-19 restrictions.

According to Gartner, China’s slowing economic conditions, as well as a decline in consumer expenditure that is driven by inflation, is expected to severely impact global exports of computers and smartphones for this year.

Smartphone shipments to China, a key smartphone market, are predicted to plunge by 18% on account of strict COVID-19 restrictions in important economic hubs such as Shanghai.

Experts expect a 7% dip in smartphone shipments and a 9.5% decline in computer exports globally, owing to supply chain disruptions and the Russia-Ukraine conflict, further raising costs, and severely impacting the demand for these devices.

As of 2022, global corporate and consumer demand for devices has decreased given the geopolitical instability, rising inflation, currency fluctuations, and supply chain snarls, which are likely to have the biggest impact on the PC industry.

Even the U.S.-based chipmaker Advanced Micro Devices Inc. predicted a slowdown in the PC market following two pandemic-driven robust years.

Businesses ranging from chipmakers like Nvidia Corporation to IT and tech behemoths like Apple Inc. and Microsoft Corporation are likely to feel the impact of the unstable demand in the market for smartphones and computers. Besides, these companies are expected to publish their second-quarter earnings soon.

Despite the uncertainty, China’s factory output increased in June as authorities eased lockdowns in major parts of the country such as Shanghai, sources claimed. Although factory activities are reviving, looming fears of another outbreak, weaker consumer confidence, and a sluggish property market are likely to hamper the economic conditions of the country in the ensuing months.

Source Credits:

https://money.usnews.com/investing/news/articles/2022-06-30/global-smartphone-pc-shipments-to-decline-in-2022-on-china-slowdown-gartner

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