New forecasting models show that sales of consumer tech products are likely to fall due to COVID-19 and relative restrictions, particularly the sale of smartphones.
In a new forecast from the Consumer Technology Association, between 138-153 million smartphones are expected to be sold in 2020. That would be up to a 15 percent decline in sales when compared to 2019. Televisions and laptops are expected to see smaller drops, with declines of up to 14 percent and 12 percent, respectively, for the year.
This data is yet another indicator that people are putting their money into more important resources due to the COVID-19 crisis. Laptops, which are predicted to have the lowest decline out of the major consumer tech products, may be seen as more of a necessity in times of working from home when compared to smartphones and televisions. Overall, consumer spending on tech and other products is falling, as people save more and spend more on food and services.
Another reason for why smartphones are projected to see such a decline is the lack of current innovation in flagship smartphones. Apple’s biggest release of the year, the $399 second-generation iPhone SE, seems to encapsulate the mood of the current smartphone market. With a lack of large upgrades, Apple and other smartphone makers may shift to cutting costs and offering the best low-budget option – especially during a COVID-19 crisis that has no nearby end in sight.