Smartphone shipments will continue to grow as emerging markets are showing strong recovery after COVID-19-related blockages. The latest data from research firm IDC suggests that by 2021 global smartphone shipments are expected to grow by 7.4 percent. Larger markets will still show lower shipment volumes compared to 2019 (pre-pandemic), but growth markets are expected to contribute to the recovery. The company also notes that 5G smartphones are the main driver of growth.
Compared to smartphone shipment volumes in 2019, last year and this year showed minimal growth but growth, according to the latest data from International Data Corporation (IDC). This year, smartphone sales are expected to grow 7.4% and, in 2022, will reach 1.37 billion units. By 2023, shipments are expected to grow by 3.4 percent. In 2021, 13.8% growth in iOS device shipments and 6.2% growth in Android device shipments contributed to the overall growth of 7.4%.
IDC also says that larger markets such as China, the United States and Western Europe will still have lower shipment volumes compared to 2019, but emerging markets such as Africa, India, Japan and the Middle East are contributing to the recovery.
The reason for this growth, albeit small, is that the smartphone market was better prepared from a supply chain perspective. Ryan Reith, group vice president of IDC’s Mobility and Consumer Device Trackers, said: “2020 was a failure due to the pandemic, but all major brands continued with their production plans, with the main difference that the schedule was pushed back . So we’re at a point where inventory levels are much healthier than PCs and some other adjacent markets and we’re seeing consumer demand resilience in the latest quarterly results. “
Manufacturers and vendors are focusing on 5G smartphones that have a significantly higher average selling price (ASP) than older 4G smartphones, which is why 5G smartphone shipments are the main driver of this 2021 growth. increase in ASP for 5G smartphones is only $2 (about Rs. 150) from 2020 to 2021, ASP for 4G smartphones continues to decline and IDC claims it has dropped nearly 30 percent this year compared to last year.
In addition, the report also points out that shipments of expensive smartphones priced above $1,000 (about Rs. 73,300) grew by 116% in the second quarter compared to last year. Its ASPs increased 9 percent as well, indicating greater demand for more expensive 5G models compared to lower-priced entry-level smartphones.