Smartphone sales expected to drop 2.5% globally this year

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Smartphone sales have continued their global decline. New numbers from Gartner forecast a drop of 2.5 percent down to 1.5 billion. The biggest hits to the industry are Japan, Western Europe and North America, which saw drops of 6.5, 5.3 and 4.4 percent, respectively.

It’s all part of a continued trend we’ve highlighted several times before. Slowed upgrade cycles, pricier phones a bad economy. Even the world’s largest smartphone market, China, saw a drop for the year, as it battles its own economic headwinds.

The Huawei ban has also impacted some of the larger numbers, though Huawei itself has continued to grow, thanks to healthy continued adoption in its home market. The company, however, is still suffering from negative connotations abroad, while cutting off access to U.S.-based companies will likely halt things further.

The good news for manufacturers in all this is a rebound set for the second half of next year, driven by 5G. The first handsets have started to arrive this year with others (including the iPhone) not expected until next. A lot’s going to have to happen for sales to reverse the downward trends — even temporarily. That’s going to take more handsets, wider 5G availability and lower prices, with many topping out well over $1,000 here in the States.

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