You may assume that popping out of a pandemic with folks out and about as soon as once more would push the demand for smartphones to climb, however it appears the other is true, as gross sales may very well be down 10% or extra this yr.

That’s in accordance with Qualcomm, which in its newest earnings launch – as noticed by The Verge (opens in new tab) – predicted that there may very well be a “low double-digit proportion decline” in handset quantity this yr, in comparison with final yr. That’s a much bigger drop than anticipated, with the corporate revising a earlier estimate it manufactured from a mid-single-digit proportion decline.

So why the dearth of demand? Qualcomm factors to the unsure financial atmosphere, which is smart – smartphones are typically costly, and new ones may not be prime of individuals’s buying lists, when cash is a fear.

Apparently, Qualcomm’s report additionally claims that attributable to a “speedy deterioration in demand” coupled with the “easing of provide constraints” within the semiconductor trade (which had beforehand been slowing down the manufacturing of smartphones), some firms now have a big stock of telephones that they’re struggling to shift.

Qualcomm didn’t identify particular firms, however The Verge notes that each Samsung and Apple are prone to be amongst them, as earlier reviews urged Samsung had an enormous variety of handsets in inventory, whereas Apple has reportedly ditched plans to extend manufacturing of the iPhone 14 line.

Evaluation: Black Friday telephone offers may very well be higher than traditional this yr

If Qualcomm’s claims and predictions are correct – which they probably are, because the firm offers elements for an enormous choice of smartphones, so would know what’s happening within the trade – then a number of firms might need inventory they’ll be wanting to shift.

Certainly, Qualcomm’s report even notes that there’s “roughly 8-10 weeks of elevated stock,” so issues may not stabilize till 2023.

All of which implies firms may be inclined to drop costs on telephones to assist shift them over the following month or two, and that timing strains up properly with Black Friday, which this yr falls on November 25.

So it’s probably that we’ll see some eye-catching offers on smartphones each on Black Friday itself and the times surrounding it, together with Cyber Monday on November 28, as these are prime alternatives for smartphone makers to extend their gross sales.

Plus, the entire reported cause for the dearth of demand is that cash is tight and prices are hovering for lots of people, so lowered costs are prone to be all of the extra necessary and interesting to patrons, in addition to sellers. As such, we’d strongly counsel protecting a watch out for the perfect Black Friday telephone offers this yr, with gives already beginning to crop up.