Covid-19 Effects on Technology Sales
May 08, 2020
Although mobile phone sales have dropped, other tech sales have soared due to Covid-19 pandemic and quarantine.
Nearly all smartphone manufacturers reported a dip in earnings over the same time period last year. However, some experts say the downturn in smartphone sales is actually part of a larger, longer trend that started in the end of 2017, when smartphone sales fell for the first time since 2004.
For Apple, for example, the dip was two-fold. It shut down all its stores in China and South Korea during the outbreaks there, although they have since reopened. During the time that their stores were closed, online sales soared. The larger hit came as a direct result of the protective and preventative measures taken to control the spread of Covid-19. As economies have shut down and stay at home orders have been put in place, consumers are choosing to save their money and hang on to their old phones instead of buying new ones.
Smartphones are the hardest hit of Apple’s products – iPhone sales dropped 7 percent over the same time period last year. However, their iPads, Mac computers and wearables – all of which are necessary pieces for working from home and keeping kids in school or entertained – didn’t experience the same drop.
Just as with Apple, the good news is that there are a number of electronics products whose sales are climbing. According to NPD Group, during the week of April 18, 1.1 million flat screens sold across the U.S., the largest number in a single week outside of the holiday shopping season. In addition, laptops and computer monitor sales are on the rise. Computer sales were up 53 percent; Chromebook – Google’s affordable laptop offering – saw sales increase 100 percent.
In addition, a number of accessories are still enjoying a large market in May: headphone sales are up 29 percent; printer sales went up 61 percent, PC microphones for Zoom calls went up a whopping 147 percent, and WIFI range extenders went up 173 percent.
Contact us today to stock up on the accessories and other products in high demand during the Covid-19 pandemic.