U.S. smartphone market may rise just 2% YoY in 2022 due to inflation: Counterpoint

According to the latest report, the US smartphone market is expected to enter a steady growth track, and smartphone demand will grow slightly by 2%. The latest forecast has been revised down from an earlier estimate of 6% year-on-year growth in 2022, as inflationary pressures are likely to reduce demand in the coming quarters.

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The U.S. smartphone market is expected to grow 2 percent this year, according to a report from Counterpoint Research. Counterpoint said its forecast for 2022 has been revised down sharply from its previous forecast for 6% growth, as demand will be subdued in the remaining quarters due to inflationary pressures.

However, there are several scheduled industry events in 2022 that will drive sales of low-end smartphones. As 3G networks are phased out, operators are forced to migrate users to new LTE and 5G equipment.

Jeff Fieldhack, Research Director at Counterpoint, said: “We started the year with strong sales momentum, growing 6% year-over-year in the first quarter of 2022 due to strong postpaid demand. However, as we increasingly see the impact of inflation in the U.S. market, We are lowering our shipment forecast numbers.”

Moreover, the report said the flat growth was attributable to demand issues. American buying habits have shifted from tech gadgets to experiences like vacations and outings. In addition, people are making fewer trips to retailers and more changes in their spending behavior as fuel prices rise due to inflation, the report said.

(via)