A new report by International Data Corporation (IDC) on the smartphone market in recent quarters reveals that Apple’s iOS devices will lead the market with two times more growth than Android smartphones in 2021. The growth is attributed to 5G network support and consumers’ positive buying trends, in spite of the COVID-19 pandemic.
Currently, several industries around the world are facing a chip crisis which has drastically impacted Apple’s smartphone rivals, like Samsung and OnePlus. As the Cupertino tech giant procures its components in advance, so there is no shortage in iPhone supply. Although the demand for Android handsets by Samsung and others has not declined, the supply chain shortage has resulted in iOS devices dominating the market.
Indian, Japanese, and other new markets will fuel Apple’s 13.8% growth in the smartphone market
IDC found that in 2021 the smartphone shipments are expected to grow by 7.4%, reaching 1.37 billion units. the growth is “attributed to a healthy 13.8% growth from iOS devices combined with 6.2% growth from Android.” And the company’s growth is boosted by the demand for 5G devices in markets in Japan, India, the Middle East, and Africa, instead of China, the United States, and Western Europe.
5G shipments continue to be a primary driver of 2021 growth as both vendors and channels focus on 5G devices that carry a significantly higher average selling price (ASP) than older 4G devices…… The total 5G shipment volume will grow to 570 million units, up 123.4% from last year. China will continue to lead the market with 47.1% of the 5G global market share, followed by the USA at 16%, India at 6.1%, and Japan at 4.1%.
Comparing manufacturing trends of 2020 with 2021, Ryan Reith, group vice president with IDC’s Mobility and Consumer Device Trackers said that companies are better prepared to meet the supply-demand with an improved inventory.
“The smartphone market was better prepared from a supply chain perspective heading into 2020 given almost all regions were expecting to grow and vendors were preparing accordingly. 2020 was a bust due to the pandemic but all of the top brands continued forward with their production plans with the main difference that the timeline was pushed out. Therefore, we are at a point where inventory levels are much healthier than PCs and some other adjacent markets and we are seeing the resilience of consumer demand in recent quarterly results.”
Anthony Scarsella, research director, Mobile Phones at IDC explained that consumers are
“Despite the ongoing issues surrounding the pandemic and the Delta variant, consumers are continuing to upgrade to more premium smartphones this year. Premium smartphones (priced at $1000+) continued to grow in the second quarter as the segment displayed 116% growth from last year. Moreover, ASPs across the entire market climbed 9% as buyer preferences trend towards more costly 5G models than entry-level devices.”
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