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Global smartphone market shrinks 6% in third quarter due to component shortage

To summarize the 2020 results, the words pandemic and shortage have always echoed, negatively impacting the electronics market, especially the smartphone market. At the beginning of 2021, many believed best that the situation could be normalized in the near future. And the first few months of the year are optimistic, the worst seems to be behind us, and the electronics market is only looking for growth.

But unfortunately, the deficit continued to determine the conditions. It affected the production of devices and their costs. After analyzing the smartphone market situation in the third quarter of this year, Canaris Analysts concluded that device shipments were down 6% year-over-year. The reason is a lack of components.

Number one continues SamsungDominates 23% of the mobile market. The company showed exactly the same results a year ago. Second place is Apple, Its share is 15%, which is 3% higher than the same period last year. Stability is Xiaomi, As in last year, occupies 14% of the smartphone market.

Fourth and fifth are Vivo and Oppo, which gained 10% market share compared to 9% in the third quarter of last year. A total of 327 million units were shipped to the market in the third quarter of this year, compared to 348 million units in the previous year. Analysts predict that you can’t expect big discounts or big sales during the holiday season. There is no guarantee that the warehouse inventory will get new items soon to cover all the demands due to lack of enough devices.

Global smartphone market shrinks 6% due to lack of components

“The chipset famine has really arrived,” said Ben Stanton, chief analyst at Canaris. “The smartphone industry strives to maximize device production as much as possible. On the supply side, chipset makers are raising prices to stop overordering. Bridging the gap between supply and demand. But nevertheless, the shortage will not be mitigated until 2022. As a result of this, and the high cost of global freight. Smartphone brands have reluctantly pushed up retail prices for devices. “

“At the local level, smartphone vendors also need to implement last-minute changes to device specifications and order quantities. It’s important to do this and maximize volume capacity. But unfortunately, retailers and It can lead to confusion and inefficiency when communicating with distributor channels, “continues Stanton. “Many channels are getting nervous towards important sales holidays, such as Singles’ Day in China and Black Friday in the West. Smartphone channel inventory is already in short supply. And more customers are these Once you start predicting the sales cycle, it will be impossible to realize the imminent wave of demand. Customers should expect this year’s smartphone discounts to be less aggressive, but their customers. To avoid disappointment, margin-constrained smartphone brands should consider bundling other devices such as wearables and IoT to give their customers a good incentive. “



https://www.gizchina.com/2021/10/17/global-smartphone-market-shrinks-6-in-q3-amid-component-shortages/ Global smartphone market shrinks 6% in third quarter due to component shortage

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