Due to inflation, the US smartphone market is expected to grow only 2% yoy in 2022

The US smartphone market is expected to settle into a steady growth trajectory, with demand for smartphones growing by a modest 2%, according to the latest report. The latest forecast has been revised down from a previous estimate of 6 per cent year-on-year growth in 2022, as inflationary pressures are likely to reduce demand in coming quarters.

The U.S. smartphone market is expected to grow 2 percent this year, according to Counterpoint Research. Counterpoint said demand in the remaining quarters would be subdued due to inflationary pressures, so its forecast for 2022 has been slashed from its previous forecast of 6 per cent growth. However, there are several scheduled industry events that will drive low-end smartphone sales in 2022. As 3G networks are gradually phased out, operators are forced to migrate customers to new LTE and 5G devices.

Jeff Fieldhack, Research director at Counterpoint, said: "We had a strong start to the year with sales up 6% year on year in Q1 2022 due to strong postpaid demand. However, we are lowering our shipment forecasts as we increasingly see the impact of inflation in the US."

The report says flat growth is due to demand issues, IT Home has learned. Americans' buying habits have shifted from technology to experiences like vacations and outings. In addition, as fuel prices rise due to inflation, people are making fewer trips to retailers and changing their spending behavior more, the report said.