With the Coronavirus wreaking havoc in Europe and North America now, the smartphone slump is in full effect, and Samsung says that 5G won't save the market from this slump.
Samsung launched its new Galaxy S20 lineup just before Coronavirus started really spreading outside of China. And due to that timing, it hasn't sold as many devices as it thought it would. While other companies have pushed back their launches, or moved to online-only launches. Samsung was banking on 5G this year, but it knows that 5G won't be able to save the smartphone market from a Coronavirus slump.
Smartphone demand was expected to grow this year
Demand for smartphones was expected to grow this year, with 5G being available in more areas. But then Coronavirus hit, and the smartphone market hasn't been the same.
There's a few reasons for this though. The smartphone market first got hit pretty bad when Coronavirus was infecting China, because the government shut down the entire country for an extra two weeks. After the Chinese New Year. This was done to help isolate the virus, though it didn't really help, as it is now present on six continents. But doing this meant that factories were shut down for over a month. Meaning that smartphones and its components weren't being made.
Once the virus started spreading to other regions of the world, many people were put out of work, which means that they might or might not be getting paid. And that also means that buying a new phone isn't at the top of their priorities now. Especially a phone that costs $1,399, like the Galaxy S20 Ultra.
Samsung is still expecting 5G demand to grow, compared to last year, but it's not going to save the market this year.
Samsung, Apple and other smartphone makers are bracing for a slow year
Samsung as well as some other major smartphone makers are bracing for a pretty slow year in sales this year. The smartphone market had already plateaued over the past five to ten years, but this was supposed to be the year that it returned to growth. Now with the Coronavirus Pandemic, even Samsung 5G smartphones won't be able to make the market grow.
Apple has closed all of its stores outside of Mainland China, and Samsung has had to shut down one of its factories. After South Korea got hit with one of the biggest outbreaks of COVID-19 outside of China.
If you're excited for the Galaxy Note 20 to come out later this year, it might not be happening.