The smartphone market is doing nicely regardless of the well being and chip disaster


The well being disaster and the chip disaster haven’t affected the smartphone market that’s in good well being, judging by the turnover generated in 2021 by corporations within the sector. In response to knowledge processed by CounterPoint Analysis, up to date to This autumn 2021, the whole turnover reached the edge of 448 billion {dollars}, with a rise of seven% on an annual foundation.

In This autumn 2021, the rise in whole income on a quarterly foundation was 20% – a partly predictable consequence, contemplating that this era of the yr is favorable for purchases, each for the renewal of the provide, and for the inevitable christmas purchasing. Outcomes worthy of notice much more so if they’re in contrast with these of earlier years and it’s thought-about that the 2 crises talked about initially have conditioned the opportunity of totally satisfying demand.

The common promoting value of smartphones in 2021 was $ 322, up 12% from the earlier yr. The reason is partly to be traced again to 5G smartphones, which generated over 40% of whole turnover in 2021. They’re inevitably costlier than 4G fashions and have had a higher diffusion: in rising markets (India, Southeast Asia, Latin American nations and Central Europe) because of the primary Chinese language manufacturers (Xiaomi, Vivo and Oppo) and in these markets mature with Apple and its iPhone 13 vary.

The smartphone market is doing nicely regardless of the well being and chip disaster

A rising world smartphone market, however concentrated within the arms of some. Simply think about who the aforementioned $ 448 billion was chargeable for. 5 manufacturers generated $ 375 billion, all of the others produced a mixed $ 73 billion. The 2021 turnover of the 5 predominant corporations within the sector is structured as follows (in brackets the variation on an annual foundation):

  • Apple, $ 196 billion (+ 35%)
  • Samsung, $ 72bn (+ 11%)
  • Oppo (together with the OnePlus model), $ 37 billion (+ 47%)
  • Xiaomi, $ 36 billion (+ 49%)
  • Vivo, $ 34bn (+ 43%)

The aforementioned improve within the common promoting value of smartphones already supplies a foundation from which to reply. The factor to consider is that some OEMs have additionally raised the costs of entry-level and mid-range merchandise. In these circumstances, the worth improve is just not, or not solely, 5G connectivity; but in addition the shortage of parts and the prices related to the sale of the product – consider transport.

Smartphone common promoting value (ASP) grew 12% YoY to achieve $322, primarily as a consequence of a better share of 5G smartphones; which have a considerably larger ASP than the 4G fashions; in addition to Apple’s profitable launch of its iPhone 13 units. In addition to, extra 5G-enabled fashions had been launched in 2021 as OEMs reminiscent of Xiaomi, vivo, OPPO and realme centered on fulfilling a higher demand for reasonably priced 5G smartphones in rising markets; reminiscent of India, Southeast Asia, LATAM and Japanese Europe. In consequence, 5G-enabled smartphones contributed greater than 40% of the worldwide smartphone shipments in 2021; in comparison with 18% in 2020.