• by Chuck Martin , June 4, 2019

Global smartphone shipments are estimated to decline 3% this year, according to a new forecast by Canalys.

The number of smartphones shipped will reach 1.35 billion, with the decrease being attributed to uncertainties relating U.S. and China trade talks.

Canalys’ base assumption is that Huawei will face restrictions once the 90-day reprieve expires, impacting its ability to roll out new services in the short term.

“It is important to note that market uncertainty is clearly prompting vendors to accelerate certain strategies to minimize the short- and long-term impact in a challenging business environment, for example, shifting manufacturing to different countries to hedge against the risk of tariffs,” states Nicole Peng, vice president, mobility. “With recent US announcements on tariffs on goods from more countries, the industry will be dealing with turmoil for some time.”

The percentage drop is similar to a recent forecast by Gartner.