Runar Biorhobad, a research analyst at Canalis, said: “Vendors had to test their tactics in the second quarter after expectations for the smartphone market became more cautious. The interim exposes it for vendors to focus on tailoring new launches, while budget-constrained consumers are shifting their device purchases to the bottom end. ”
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Analyst Toby Joe added that “the drop in demand is causing great concern throughout the smartphone supply chain. While component inventory and cost pressures are eased, a number of concerns remain in logistics and manufacturing, such as tightening import laws in emerging markets and evolving customs procedures.” He anticipates aggressive promotions in the upcoming holiday season, to get rid of the excess inventory of devices that were not sold following the drop in demand.